https://www.taxtmi.com/caselaws?id=81052 Modvat credit taken and utilised while final products were dutiable became inadmissible once those products later became wholly exempt under Rule 57C of the Central Excise Rules, 1944. Rule 57C was applied to bar credit where the final product is exempt from duty, and Rule 57F(3) was read as tying credit to inputs used for the relevant final products. The Tribunal held that administrative practice permitting immediate availment and utilisation could not override the statutory restriction. Earlier authorities on proforma credit under Rule 56A and on full utilisation of inputs were distinguished as not covering a situation where the final product itself had become exempt. The credit was therefore recoverable and reversal was upheld. en-us Mon, 21 Jan 1991 00:00:00 +0530 Wed, 22 Jun 2011 11:07:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=81052 Modvat credit taken and utilised while final products were dutiable became inadmissible once those products later became wholly exempt under Rule 57C of the Central Excise Rules, 1944. Rule 57C was applied to bar credit where the final product is exempt from duty, and Rule 57F(3) was read as tying credit to inputs used for the relevant final products. The Tribunal held that administrative practice permitting immediate availment and utilisation could not override the statutory restriction. Earlier authorities on proforma credit under Rule 56A and on full utilisation of inputs were distinguished as not covering a situation where the final product itself had become exempt. The credit was therefore recoverable and reversal was upheld. Case-Laws Central Excise Mon, 21 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=81052