https://www.taxtmi.com/caselaws?id=91425 An assessee is not required to claim exemption merely because the final product could have been cleared under an exemption notification. Where duty is actually paid on inputs used in the manufacture of captively consumed goods, Modvat credit cannot be denied solely because the finished product was capable of exemption. The Tribunal rejected the department's view that duty paid on the captive product was only a deposit, and applied its earlier reasoning that actual duty payment on inputs preserves credit entitlement. On that basis, Modvat credit was held available. en-us Thu, 13 May 1999 00:00:00 +0530 Mon, 17 Oct 2011 18:26:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=91425 An assessee is not required to claim exemption merely because the final product could have been cleared under an exemption notification. Where duty is actually paid on inputs used in the manufacture of captively consumed goods, Modvat credit cannot be denied solely because the finished product was capable of exemption. The Tribunal rejected the department's view that duty paid on the captive product was only a deposit, and applied its earlier reasoning that actual duty payment on inputs preserves credit entitlement. On that basis, Modvat credit was held available. Case-Laws Central Excise Thu, 13 May 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=91425