https://www.taxtmi.com/caselaws?id=84747 MODVAT credit validly taken on eligible inputs need not be reversed merely because the finished product is later exempted or subject to nil duty. The scheme treats credit as part of a common pool, so one-to-one correlation between particular inputs and outputs is not required. Where credit was correctly availed and utilised while eligibility existed, later exemption does not undo that lawful credit. Recovery, if any, is confined to duty on inputs still lying in stock under the governing rule, rather than reversal of properly taken credit. en-us Mon, 29 May 1995 00:00:00 +0530 Mon, 25 Jul 2011 13:14:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84747 MODVAT credit validly taken on eligible inputs need not be reversed merely because the finished product is later exempted or subject to nil duty. The scheme treats credit as part of a common pool, so one-to-one correlation between particular inputs and outputs is not required. Where credit was correctly availed and utilised while eligibility existed, later exemption does not undo that lawful credit. Recovery, if any, is confined to duty on inputs still lying in stock under the governing rule, rather than reversal of properly taken credit. Case-Laws Central Excise Mon, 29 May 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84747