https://www.taxtmi.com/caselaws?id=85689 Modvat credit was barred on inputs used in goods cleared under full exemption or at nil rate, because Rule 57C denies credit for exempt clearances even if the goods are used within the factory; the denial was upheld. Credit was allowed on bottles broken during handling and on rejected bottles identified before the RG 1 stage, because such waste and rejection arose integrally in manufacture and Rule 57D protected the credit, subject to prescribed destruction under Rule 57F. As the duty demand was reduced after allowing credit on a substantial part of the dispute, the penalty was held excessive and reduced substantially. en-us Fri, 19 Jul 1996 00:00:00 +0530 Sat, 06 Aug 2011 15:46:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85689 Modvat credit was barred on inputs used in goods cleared under full exemption or at nil rate, because Rule 57C denies credit for exempt clearances even if the goods are used within the factory; the denial was upheld. Credit was allowed on bottles broken during handling and on rejected bottles identified before the RG 1 stage, because such waste and rejection arose integrally in manufacture and Rule 57D protected the credit, subject to prescribed destruction under Rule 57F. As the duty demand was reduced after allowing credit on a substantial part of the dispute, the penalty was held excessive and reduced substantially. Case-Laws Central Excise Fri, 19 Jul 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85689