https://www.taxtmi.com/caselaws?id=73211 Proforma credit remained available where duty-paid inputs were used in a manufacturing chain that produced a fully exempt intermediate product, provided that intermediate was consumed within the factory in the manufacture of the notified dutiable final goods. The operative principle was that inputs do not lose their credit eligibility merely because manufacture passes through a non-dutiable stage, so long as the intermediate product is not removed as such and is used in producing the finished goods. A departmental trade notice and the Bombay High Court view were relied on to support this interpretation, and the objection to credit on the basis of the exempt intermediate stage was rejected. en-us Thu, 30 Jul 1987 00:00:00 +0530 Mon, 30 May 2011 12:54:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=73211 Proforma credit remained available where duty-paid inputs were used in a manufacturing chain that produced a fully exempt intermediate product, provided that intermediate was consumed within the factory in the manufacture of the notified dutiable final goods. The operative principle was that inputs do not lose their credit eligibility merely because manufacture passes through a non-dutiable stage, so long as the intermediate product is not removed as such and is used in producing the finished goods. A departmental trade notice and the Bombay High Court view were relied on to support this interpretation, and the objection to credit on the basis of the exempt intermediate stage was rejected. Case-Laws Customs Thu, 30 Jul 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=73211