https://www.taxtmi.com/caselaws?id=74266 A manufacturer who had opted into the Modvat scheme could validly withdraw before the end of the financial year because Rules 57A to 57J of the Central Excise Rules, 1944 contained no prohibition on mid-year exit. An earlier Tribunal view and the departmental trade notice both recognised that such withdrawal was permissible, though the clearances made after exit still had to be counted for aggregate turnover under Notification No. 175/86. On that basis, a duty demand founded on Rule 9(2) could not be sustained, and the associated penalty was also not sustainable. en-us Fri, 16 Sep 1988 00:00:00 +0530 Tue, 07 Jun 2011 16:58:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=74266 A manufacturer who had opted into the Modvat scheme could validly withdraw before the end of the financial year because Rules 57A to 57J of the Central Excise Rules, 1944 contained no prohibition on mid-year exit. An earlier Tribunal view and the departmental trade notice both recognised that such withdrawal was permissible, though the clearances made after exit still had to be counted for aggregate turnover under Notification No. 175/86. On that basis, a duty demand founded on Rule 9(2) could not be sustained, and the associated penalty was also not sustainable. Case-Laws Central Excise Fri, 16 Sep 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=74266