https://www.taxtmi.com/caselaws?id=87787 Modvat credit was denied on inputs used in the manufacture of fully exempt final products because a Larger Bench ruling had already settled that such credit is not admissible under Rule 57C, and the earlier divergence of views did not affect that binding position. The penalties, however, were set aside because the credit had been taken on a genuinely debatable issue under a bona fide belief, and fiscal penalty was considered unwarranted absent wilful breach or mala fide intention. The appeals therefore succeeded only on the penalty question, while the substantive denial of credit was sustained. en-us Thu, 24 Jul 1997 00:00:00 +0530 Sat, 10 Sep 2011 13:24:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87787 Modvat credit was denied on inputs used in the manufacture of fully exempt final products because a Larger Bench ruling had already settled that such credit is not admissible under Rule 57C, and the earlier divergence of views did not affect that binding position. The penalties, however, were set aside because the credit had been taken on a genuinely debatable issue under a bona fide belief, and fiscal penalty was considered unwarranted absent wilful breach or mala fide intention. The appeals therefore succeeded only on the penalty question, while the substantive denial of credit was sustained. Case-Laws Central Excise Thu, 24 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87787