https://www.taxtmi.com/caselaws?id=82786 Modvat credit on inputs used to manufacture intermediate goods cleared under Notification No. 217/86 to another factory of the same assessee was held admissible where the ultimate final products were dutiable. Notification No. 217/86 was treated as part of the Modvat scheme, permitting duty-free movement of such intermediate goods within the same manufacturing chain, and Rule 57C was construed to deny credit only when the final product itself was wholly exempt or nil-rated. A mechanical reading of Rule 57C would defeat the object of the notification and the credit scheme, so the credit could not be denied on the basis that the intermediate goods were exempt or chargeable to nil duty. en-us Fri, 27 Aug 1993 00:00:00 +0530 Sat, 13 Dec 2025 10:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=82786 Modvat credit on inputs used to manufacture intermediate goods cleared under Notification No. 217/86 to another factory of the same assessee was held admissible where the ultimate final products were dutiable. Notification No. 217/86 was treated as part of the Modvat scheme, permitting duty-free movement of such intermediate goods within the same manufacturing chain, and Rule 57C was construed to deny credit only when the final product itself was wholly exempt or nil-rated. A mechanical reading of Rule 57C would defeat the object of the notification and the credit scheme, so the credit could not be denied on the basis that the intermediate goods were exempt or chargeable to nil duty. Case-Laws Central Excise Fri, 27 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=82786