https://www.taxtmi.com/caselaws?id=84395 A manufacturer may decline to avail an exemption notification under Section 5A(1) and pay duty at the tariff rate; in that situation, Modvat credit on inputs remains admissible because exemption and credit provisions are to be applied consistently with the scheme against cascading duty. The Tribunal also held that recovery of wrongly taken credit under Rule 57-I was sustainable once the credit was determined as irregular, but penalty could not be imposed without a specific show cause notice covering that consequence. The credit dispute was resolved in favour of the assessee and the penalty was set aside. en-us Wed, 05 Apr 1995 00:00:00 +0530 Thu, 21 Jul 2011 16:42:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84395 A manufacturer may decline to avail an exemption notification under Section 5A(1) and pay duty at the tariff rate; in that situation, Modvat credit on inputs remains admissible because exemption and credit provisions are to be applied consistently with the scheme against cascading duty. The Tribunal also held that recovery of wrongly taken credit under Rule 57-I was sustainable once the credit was determined as irregular, but penalty could not be imposed without a specific show cause notice covering that consequence. The credit dispute was resolved in favour of the assessee and the penalty was set aside. Case-Laws Central Excise Wed, 05 Apr 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84395