https://www.taxtmi.com/caselaws?id=93047 Modvat credit on capital goods used to make tools captively consumed in further manufacture was treated as admissible under Rule 57R(2) of the Central Excise Rules, 1944. The Tribunal applied the principle that a product may be a final product when cleared on duty, but an intermediate product when used captively in making dutiable final products; on that basis, Notification No. 67/95-C.E. did not defeat credit. It also noted that the arrangement was revenue neutral, since duty on the tools and credit on the final products would offset each other, so denial of credit was not justified. en-us Wed, 08 Sep 1999 00:00:00 +0530 Mon, 07 Nov 2011 18:42:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=93047 Modvat credit on capital goods used to make tools captively consumed in further manufacture was treated as admissible under Rule 57R(2) of the Central Excise Rules, 1944. The Tribunal applied the principle that a product may be a final product when cleared on duty, but an intermediate product when used captively in making dutiable final products; on that basis, Notification No. 67/95-C.E. did not defeat credit. It also noted that the arrangement was revenue neutral, since duty on the tools and credit on the final products would offset each other, so denial of credit was not justified. Case-Laws Central Excise Wed, 08 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=93047