https://www.taxtmi.com/caselaws?id=87237 Rule 57C of the Central Excise Rules restricts Modvat credit where final products are wholly exempt or subject to nil duty. Its consequence is reversal of credit remaining in account or recovery where credit has been wrongly retained and used for other clearances. Where credit was instead utilised to pay duty on the same goods treated as exempt, no unutilised credit remained for other use. Such utilisation itself gives effect to the credit disallowance, so a separate demand based solely on the goods' exempt status is not sustainable. en-us Tue, 12 Aug 1997 00:00:00 +0530 Sat, 03 Sep 2011 16:19:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87237 Rule 57C of the Central Excise Rules restricts Modvat credit where final products are wholly exempt or subject to nil duty. Its consequence is reversal of credit remaining in account or recovery where credit has been wrongly retained and used for other clearances. Where credit was instead utilised to pay duty on the same goods treated as exempt, no unutilised credit remained for other use. Such utilisation itself gives effect to the credit disallowance, so a separate demand based solely on the goods' exempt status is not sustainable. Case-Laws Central Excise Tue, 12 Aug 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87237