https://www.taxtmi.com/caselaws?id=88863 Modvat credit was held inadmissible on inputs used in manufacturing finished goods supplied to the Indian Navy where those goods were wholly exempt from Central Excise duty under the relevant notifications. The Tribunal applied the principle that credit cannot be taken for inputs consumed in producing fully exempt final products, and treated the later High Court view on the point as binding. Penalty was nevertheless set aside because the assessee's entitlement to credit was uncertain on the facts and the Tribunal found a bona fide misconception, making penal consequence unwarranted. en-us Thu, 28 May 1998 00:00:00 +0530 Wed, 21 Sep 2011 18:13:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=88863 Modvat credit was held inadmissible on inputs used in manufacturing finished goods supplied to the Indian Navy where those goods were wholly exempt from Central Excise duty under the relevant notifications. The Tribunal applied the principle that credit cannot be taken for inputs consumed in producing fully exempt final products, and treated the later High Court view on the point as binding. Penalty was nevertheless set aside because the assessee's entitlement to credit was uncertain on the facts and the Tribunal found a bona fide misconception, making penal consequence unwarranted. Case-Laws Central Excise Thu, 28 May 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=88863