https://www.taxtmi.com/caselaws?id=103734 Modvat credit on capital goods remained admissible where the goods were used to manufacture dutiable cotton yarn and exempt waste yarn arose only incidentally as a by-product during the process. Rule 57R barred credit only when capital goods were used exclusively for exempt final products, and Rule 57R(2) protected credit where exempt intermediate products emerged in the course of manufacture. The subsequent amendment by Notification No. 46/97-C.E. (N.T.) did not change that position on these facts. Credit could therefore not be denied merely because an incidental exempt product arose during manufacture. en-us Fri, 19 Oct 2001 00:00:00 +0530 Fri, 24 Feb 2012 14:59:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103734 Modvat credit on capital goods remained admissible where the goods were used to manufacture dutiable cotton yarn and exempt waste yarn arose only incidentally as a by-product during the process. Rule 57R barred credit only when capital goods were used exclusively for exempt final products, and Rule 57R(2) protected credit where exempt intermediate products emerged in the course of manufacture. The subsequent amendment by Notification No. 46/97-C.E. (N.T.) did not change that position on these facts. Credit could therefore not be denied merely because an incidental exempt product arose during manufacture. Case-Laws Central Excise Fri, 19 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103734