https://www.taxtmi.com/caselaws?id=87141 Modvat credit was held admissible only while the inputs were used in relation to a dutiable final product. Once the final product became fully exempt or chargeable to nil rate of duty, Rule 57C operated as an automatic bar, regardless of whether the exemption existed when the inputs were received or arose later. Credit taken in breach of that embargo became invalid, and any credit already utilised was recoverable under Rule 57I. The scheme under Rules 57A to 57J was therefore treated as unavailable after the product lost dutiability, and reversal of the credit was upheld. en-us Fri, 04 Apr 1997 00:00:00 +0530 Sat, 03 Sep 2011 11:04:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87141 Modvat credit was held admissible only while the inputs were used in relation to a dutiable final product. Once the final product became fully exempt or chargeable to nil rate of duty, Rule 57C operated as an automatic bar, regardless of whether the exemption existed when the inputs were received or arose later. Credit taken in breach of that embargo became invalid, and any credit already utilised was recoverable under Rule 57I. The scheme under Rules 57A to 57J was therefore treated as unavailable after the product lost dutiability, and reversal of the credit was upheld. Case-Laws Central Excise Fri, 04 Apr 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87141