Minutes of the Monthly MODVAT meeting held on 6-2-1989 and 8-3-1989 at Delhi - Point No. 15 - Regarding Modvat problem concerning pharmaceutical products
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Modvat credit reversal required when final products become exempt; inputs held in stock must be reversed. Credit of duty taken on inputs that are in stock on the date the finished product becomes exempt must be reversed because those inputs will be used in exempt final products; Rule 57C is sufficiently clear to require such reversal and needs no amendment, and field formations and trade are to be informed so pending cases may be settled accordingly.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Modvat credit reversal required when final products become exempt; inputs held in stock must be reversed.
Credit of duty taken on inputs that are in stock on the date the finished product becomes exempt must be reversed because those inputs will be used in exempt final products; Rule 57C is sufficiently clear to require such reversal and needs no amendment, and field formations and trade are to be informed so pending cases may be settled accordingly.
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