Modvat credit and full exemption coexistence permitted where separate accounting and input-output attribution secure correct credit application. Simultaneous availment of Modvat input-credit and full exemption is permitted provided the inputs on which credit is taken are used in manufacture of dutiable final products and accounted for through a reasonable system. Manufacturers may produce exempt and dutiable variants concurrently if separate accounts are maintained from raw material to finished product. Claimants must give prompt intimation on receipt of raw materials destined for exempt production, make such material available for inspection, maintain records, and submit quarterly returns; the approach applies to other commodities under similar circumstances.
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 and full exemption coexistence permitted where separate accounting and input-output attribution secure correct credit application.
Simultaneous availment of Modvat input-credit and full exemption is permitted provided the inputs on which credit is taken are used in manufacture of dutiable final products and accounted for through a reasonable system. Manufacturers may produce exempt and dutiable variants concurrently if separate accounts are maintained from raw material to finished product. Claimants must give prompt intimation on receipt of raw materials destined for exempt production, make such material available for inspection, maintain records, and submit quarterly returns; the approach applies to other commodities under similar circumstances.
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