Disallowance of Modvat credit requires a demand letter giving a short period to reverse before issuing a show cause notice. When Modvat credit is wrongly availed, the officer should issue a reasoned demand letter requiring the assessee to pay or debit the wrongly taken credit within seven days; a show cause notice is to be issued only if the assessee fails to reverse the credit within that period or is unwilling to comply.
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.
Disallowance of Modvat credit requires a demand letter giving a short period to reverse before issuing a show cause notice.
When Modvat credit is wrongly availed, the officer should issue a reasoned demand letter requiring the assessee to pay or debit the wrongly taken credit within seven days; a show cause notice is to be issued only if the assessee fails to reverse the credit within that period or is unwilling to comply.
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