https://www.taxtmi.com/caselaws?id=89279 Modvat credit on duty-paid DMI-70 was held inadmissible because the material was not used in the manufacture of the final products cleared for home consumption, and rebate eligibility for exported goods did not cure the defect in credit availment. The processes of dehumidification, organoleptic evaluation and related operations were found insufficient to amount to manufacture or to create a distinct new product, so DMI-70 retained its character. While the duty demand was sustained, the penalty was reduced on the facts from one lakh rupees to ten thousand rupees. en-us Tue, 16 Jun 1998 00:00:00 +0530 Mon, 26 Sep 2011 10:24:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=89279 Modvat credit on duty-paid DMI-70 was held inadmissible because the material was not used in the manufacture of the final products cleared for home consumption, and rebate eligibility for exported goods did not cure the defect in credit availment. The processes of dehumidification, organoleptic evaluation and related operations were found insufficient to amount to manufacture or to create a distinct new product, so DMI-70 retained its character. While the duty demand was sustained, the penalty was reduced on the facts from one lakh rupees to ten thousand rupees. Case-Laws Central Excise Tue, 16 Jun 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=89279