https://www.taxtmi.com/caselaws?id=115722 Modvat credit was held inadmissible on an input used exclusively in manufacturing exempted final goods supplied to the Navy, because credit cannot be retained where duty-paid inputs are consumed for exempt output. The demand for reversal of credit was sustained, subject to pro rata adjustment of the amount already paid at clearance to prevent double recovery. Penalty under the excise rules was set aside because the assessee had already paid 8% of the value of the final product, and the facts did not establish mala fide intent to evade duty. en-us Fri, 05 Aug 2005 00:00:00 +0530 Fri, 01 Jun 2012 14:14:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115722 Modvat credit was held inadmissible on an input used exclusively in manufacturing exempted final goods supplied to the Navy, because credit cannot be retained where duty-paid inputs are consumed for exempt output. The demand for reversal of credit was sustained, subject to pro rata adjustment of the amount already paid at clearance to prevent double recovery. Penalty under the excise rules was set aside because the assessee had already paid 8% of the value of the final product, and the facts did not establish mala fide intent to evade duty. Case-Laws Central Excise Fri, 05 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115722