https://www.taxtmi.com/caselaws?id=108897 Rule 57CC(1) of the Central Excise Rules, 1944 was inapplicable where batteries were exported under bond and the only domestic clearances were exempt supplies to the Indian Navy, because Rule 57CC(6) excludes such bonded exports from the rule's operation. On those facts, the demand based on Rule 57CC(1) could not be sustained. Reversal of Modvat credit before departmental proceedings meant the assessee could not be treated as having retained credit on inputs used for exempt final products, especially where the reversal was made on its own intimation and the credit was not utilised. The reversed credit therefore could not support duty, penalty, confiscation, or related consequences, and the impugned order was set aside. en-us Tue, 25 Mar 2003 00:00:00 +0530 Wed, 04 Apr 2012 14:13:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108897 Rule 57CC(1) of the Central Excise Rules, 1944 was inapplicable where batteries were exported under bond and the only domestic clearances were exempt supplies to the Indian Navy, because Rule 57CC(6) excludes such bonded exports from the rule's operation. On those facts, the demand based on Rule 57CC(1) could not be sustained. Reversal of Modvat credit before departmental proceedings meant the assessee could not be treated as having retained credit on inputs used for exempt final products, especially where the reversal was made on its own intimation and the credit was not utilised. The reversed credit therefore could not support duty, penalty, confiscation, or related consequences, and the impugned order was set aside. Case-Laws Central Excise Tue, 25 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108897