https://www.taxtmi.com/caselaws?id=87039 Modvat credit on duty-paid scrap could be used to pay duty on steel ingots manufactured from non-duty-paid inputs, because Rule 57F(3) allows credit on inputs to be applied against duty on the relevant final products without a one-to-one correlation. The scheme's purpose is to prevent cascading of duty, and excess accumulated credit may be utilised where the duty on inputs exceeds the duty on final products. In the absence of any statutory requirement for separate accounts for different categories of scrap, the departmental objection to such utilisation was unsustainable, and the disallowance of credit was set aside with consequential relief. en-us Tue, 08 Jul 1997 00:00:00 +0530 Fri, 02 Sep 2011 14:11:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87039 Modvat credit on duty-paid scrap could be used to pay duty on steel ingots manufactured from non-duty-paid inputs, because Rule 57F(3) allows credit on inputs to be applied against duty on the relevant final products without a one-to-one correlation. The scheme's purpose is to prevent cascading of duty, and excess accumulated credit may be utilised where the duty on inputs exceeds the duty on final products. In the absence of any statutory requirement for separate accounts for different categories of scrap, the departmental objection to such utilisation was unsustainable, and the disallowance of credit was set aside with consequential relief. Case-Laws Central Excise Tue, 08 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87039