https://www.taxtmi.com/caselaws?id=84008 Exemption under Notification No. 53/88-C.E. was denied for HDPE bags and sacks because Modvat credit had been taken on HDPE granules used in the manufacture chain; the existence of exempt intermediate products did not break the chain, and strict construction of the notification required non-availment of credit on inputs used for the final goods. The demand was not treated as time barred because the classification list was still pending approval and the proceeding concerned finalisation of classification, not a completed assessment. Penalty was unwarranted, as the record did not show clandestine removal, deliberate suppression, or mala fide intent to evade duty. en-us Mon, 06 Feb 1995 00:00:00 +0530 Tue, 19 Jul 2011 12:20:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84008 Exemption under Notification No. 53/88-C.E. was denied for HDPE bags and sacks because Modvat credit had been taken on HDPE granules used in the manufacture chain; the existence of exempt intermediate products did not break the chain, and strict construction of the notification required non-availment of credit on inputs used for the final goods. The demand was not treated as time barred because the classification list was still pending approval and the proceeding concerned finalisation of classification, not a completed assessment. Penalty was unwarranted, as the record did not show clandestine removal, deliberate suppression, or mala fide intent to evade duty. Case-Laws Central Excise Mon, 06 Feb 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84008