https://www.taxtmi.com/caselaws?id=99373 Modvat credit was treated as unavailable on inputs used to manufacture parts or components cleared without payment of duty under Chapter X procedure and Notification No. 217/86-C.E., because Rule 57C bars credit where the relevant final products are exempt or chargeable at nil rate. The same principle was applied to intermediate goods cleared under exemption, with the view that duty could be paid on such goods if credit was to be retained. The penalty under Rule 173Q was examined separately and was not sustained on the facts, showing that penal action requires independent justification even where credit reversal is upheld. en-us Thu, 14 Dec 2000 00:00:00 +0530 Fri, 27 Jan 2012 11:22:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99373 Modvat credit was treated as unavailable on inputs used to manufacture parts or components cleared without payment of duty under Chapter X procedure and Notification No. 217/86-C.E., because Rule 57C bars credit where the relevant final products are exempt or chargeable at nil rate. The same principle was applied to intermediate goods cleared under exemption, with the view that duty could be paid on such goods if credit was to be retained. The penalty under Rule 173Q was examined separately and was not sustained on the facts, showing that penal action requires independent justification even where credit reversal is upheld. Case-Laws Central Excise Thu, 14 Dec 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99373