https://www.taxtmi.com/caselaws?id=98461 Modvat credit on duty-paid plastic granules does not extend to waste and scrap arising during manufacture when those remnants are cleared to job workers. Rule 57F(3) applies to inputs as such, or after partial processing, and does not treat waste and scrap as equivalent to inputs. Where credit has been taken, Rule 57F(5) requires such waste to be removed on payment of duty as if manufactured in the factory. The text also notes that penalty may be deleted even where credit disallowance and duty demand are sustained, depending on the circumstances. en-us Fri, 16 Feb 2001 00:00:00 +0530 Fri, 20 Jan 2012 17:08:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98461 Modvat credit on duty-paid plastic granules does not extend to waste and scrap arising during manufacture when those remnants are cleared to job workers. Rule 57F(3) applies to inputs as such, or after partial processing, and does not treat waste and scrap as equivalent to inputs. Where credit has been taken, Rule 57F(5) requires such waste to be removed on payment of duty as if manufactured in the factory. The text also notes that penalty may be deleted even where credit disallowance and duty demand are sustained, depending on the circumstances. Case-Laws Central Excise Fri, 16 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98461