https://www.taxtmi.com/caselaws?id=90830 Modvat credit under Rule 57A and related provisions was not reducible merely because the inputs were sold to a sister concern at a concessional price. Credit was tied to the duty actually debited on the inputs and evidenced by the prescribed duty-paying document, not to the internal transfer price between related units. As duty had been computed and debited on the higher assessable value, the concessional sale did not affect entitlement to credit. In the absence of any scheme provision barring such a sale or requiring proportionate reduction, disallowance of credit and the connected penalty were unsustainable. en-us Fri, 08 Jan 1999 00:00:00 +0530 Tue, 11 Oct 2011 18:10:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=90830 Modvat credit under Rule 57A and related provisions was not reducible merely because the inputs were sold to a sister concern at a concessional price. Credit was tied to the duty actually debited on the inputs and evidenced by the prescribed duty-paying document, not to the internal transfer price between related units. As duty had been computed and debited on the higher assessable value, the concessional sale did not affect entitlement to credit. In the absence of any scheme provision barring such a sale or requiring proportionate reduction, disallowance of credit and the connected penalty were unsustainable. Case-Laws Central Excise Fri, 08 Jan 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=90830