https://www.taxtmi.com/caselaws?id=78037 Modvat credit on inputs used in an intermediate product could not be denied under Rule 57C where the goods were transferred between units of the same manufacturer under Notification No. 217/86-C.E. and Chapter X procedure, and duty was ultimately paid on the final product. The Court held that Rule 57C must be read consistently with the Modvat scheme and exemption notification, and not applied mechanically to defeat their object. It also distinguished the Tribunal ruling in Kirloskar Oil Engines on the facts, finding it inapplicable to this inter-factory transfer arrangement. The reference was disposed of in favour of the assessee, and credit was upheld. en-us Wed, 22 Jul 2009 00:00:00 +0530 Wed, 27 Oct 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=78037 Modvat credit on inputs used in an intermediate product could not be denied under Rule 57C where the goods were transferred between units of the same manufacturer under Notification No. 217/86-C.E. and Chapter X procedure, and duty was ultimately paid on the final product. The Court held that Rule 57C must be read consistently with the Modvat scheme and exemption notification, and not applied mechanically to defeat their object. It also distinguished the Tribunal ruling in Kirloskar Oil Engines on the facts, finding it inapplicable to this inter-factory transfer arrangement. The reference was disposed of in favour of the assessee, and credit was upheld. Case-Laws Central Excise Wed, 22 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=78037