https://www.taxtmi.com/caselaws?id=93699 Modvat credit could not be denied on duty-paid steam received through pipeline merely because the steam was exempt under Notification No. 4/97-C.E. The Tribunal held that an exemption notification does not compel the manufacturer to avail exemption, and the supplier may lawfully choose to pay duty instead. Since duty was actually paid on the steam, that payment was treated as valid, and the departmental circular did not justify refusal of credit. The denial of Modvat credit was therefore unsustainable, and credit on the duty-paid steam was upheld with consequential relief. en-us Mon, 22 May 2000 00:00:00 +0530 Wed, 16 Nov 2011 12:37:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=93699 Modvat credit could not be denied on duty-paid steam received through pipeline merely because the steam was exempt under Notification No. 4/97-C.E. The Tribunal held that an exemption notification does not compel the manufacturer to avail exemption, and the supplier may lawfully choose to pay duty instead. Since duty was actually paid on the steam, that payment was treated as valid, and the departmental circular did not justify refusal of credit. The denial of Modvat credit was therefore unsustainable, and credit on the duty-paid steam was upheld with consequential relief. Case-Laws Central Excise Mon, 22 May 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=93699