https://www.taxtmi.com/caselaws?id=81168 A debit made only to reverse ineligible Modvat credit on inputs used in exempt final products does not amount to payment of duty. Rule 57C barred credit where the final product was exempt, and the available RG 23A Part II balance, once disallowed for ineligible use, was merely foregone credit rather than discharge of an independent duty liability. Because the inputs were not cleared as such and were fully consumed in manufacture, the department could not insist on a second cash payment or personal ledger debit for the same amount. The stated conclusion is that further demand was unjustified. en-us Tue, 21 Aug 1990 00:00:00 +0530 Wed, 22 Jun 2011 18:14:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=81168 A debit made only to reverse ineligible Modvat credit on inputs used in exempt final products does not amount to payment of duty. Rule 57C barred credit where the final product was exempt, and the available RG 23A Part II balance, once disallowed for ineligible use, was merely foregone credit rather than discharge of an independent duty liability. Because the inputs were not cleared as such and were fully consumed in manufacture, the department could not insist on a second cash payment or personal ledger debit for the same amount. The stated conclusion is that further demand was unjustified. Case-Laws Central Excise Tue, 21 Aug 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=81168