https://www.taxtmi.com/caselaws?id=108101 Scrap generated from inputs on which Modvat credit had been taken was not eligible for exemption under Notification No. 53/88 because the notification applied only where the scrap arose from duty-paid inputs. Once credit was availed, the inputs lost their duty-paid character, and Rule 57F treated them as if used in the assessee's factory with the duty element taken as credit. The exemption could be claimed again only if the Modvat credit was reversed. The operative principle is that a conditional exemption linked to duty-paid inputs fails when credit is taken and the duty-paid status is thereby displaced. en-us Fri, 16 Aug 1996 00:00:00 +0530 Wed, 28 Mar 2012 17:22:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108101 Scrap generated from inputs on which Modvat credit had been taken was not eligible for exemption under Notification No. 53/88 because the notification applied only where the scrap arose from duty-paid inputs. Once credit was availed, the inputs lost their duty-paid character, and Rule 57F treated them as if used in the assessee's factory with the duty element taken as credit. The exemption could be claimed again only if the Modvat credit was reversed. The operative principle is that a conditional exemption linked to duty-paid inputs fails when credit is taken and the duty-paid status is thereby displaced. Case-Laws Central Excise Fri, 16 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108101