https://www.taxtmi.com/caselaws?id=116838 Excise duty applies only to goods that emerge from manufacture, so scrap and discarded drums are not dutiable unless their manufacture is shown, while paper packing material already suffered duty at supplier stage. Modvat credit may be reversed where stock variation shows inputs were not physically available, and credit on capital goods received before 1-3-1997 can be denied under the applicable rule. Samples removed after manufacture for testing are treated as dutiable goods. Penalty provisions may apply where credit is taken in breach of excise rules with intent to evade duty, but the quantum must reflect the nature and timing of the default; separate penalties may be sustained or set aside depending on the participant's role. en-us Fri, 18 Nov 2005 00:00:00 +0530 Mon, 18 Jun 2012 11:52:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=116838 Excise duty applies only to goods that emerge from manufacture, so scrap and discarded drums are not dutiable unless their manufacture is shown, while paper packing material already suffered duty at supplier stage. Modvat credit may be reversed where stock variation shows inputs were not physically available, and credit on capital goods received before 1-3-1997 can be denied under the applicable rule. Samples removed after manufacture for testing are treated as dutiable goods. Penalty provisions may apply where credit is taken in breach of excise rules with intent to evade duty, but the quantum must reflect the nature and timing of the default; separate penalties may be sustained or set aside depending on the participant's role. Case-Laws Central Excise Fri, 18 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=116838