https://www.taxtmi.com/caselaws?id=104799 Modvat credit on packaging materials was considered inadmissible where the inputs, after credit was taken, were cleared to another unit and used there without following the procedure under Rule 57F. The commentary treats compliance with the prescribed clearance and utilisation procedure as substantive within the Modvat scheme, so credit cannot be retained merely because the materials were ultimately used for packing. It also notes that personal penalty may be moderated on the facts, even where the duty demand is sustained, if the original penalty is found excessive. en-us Mon, 18 Mar 2002 00:00:00 +0530 Thu, 01 Mar 2012 12:59:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104799 Modvat credit on packaging materials was considered inadmissible where the inputs, after credit was taken, were cleared to another unit and used there without following the procedure under Rule 57F. The commentary treats compliance with the prescribed clearance and utilisation procedure as substantive within the Modvat scheme, so credit cannot be retained merely because the materials were ultimately used for packing. It also notes that personal penalty may be moderated on the facts, even where the duty demand is sustained, if the original penalty is found excessive. Case-Laws Central Excise Mon, 18 Mar 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104799