https://www.taxtmi.com/caselaws?id=85124 MODVAT credit validly taken on inputs and correctly utilised for duty payment did not have to be reversed merely because the final product later became exempt, including for inputs lying in stock on the date of exemption. The scheme was treated as a beneficial anti-cascading measure, and Rule 57I was confined to wrongly availed or irregularly utilised credit; it did not authorise recovery where credit had been properly taken and used. The absence of batch-to-batch correlation under the scheme was relevant. If such inputs were later used outside the MODVAT framework, duty could be recovered under Rule 57F(1)(ii), but that did not require reversal of the credit already availed. en-us Tue, 19 Apr 1994 00:00:00 +0530 Tue, 02 Aug 2011 18:13:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85124 MODVAT credit validly taken on inputs and correctly utilised for duty payment did not have to be reversed merely because the final product later became exempt, including for inputs lying in stock on the date of exemption. The scheme was treated as a beneficial anti-cascading measure, and Rule 57I was confined to wrongly availed or irregularly utilised credit; it did not authorise recovery where credit had been properly taken and used. The absence of batch-to-batch correlation under the scheme was relevant. If such inputs were later used outside the MODVAT framework, duty could be recovered under Rule 57F(1)(ii), but that did not require reversal of the credit already availed. Case-Laws Central Excise Tue, 19 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85124