https://www.taxtmi.com/caselaws?id=116936 Intermediate products cleared to another unit under Notification No. 217/86-C.E. for further manufacture of dutiable final products were held eligible for the notification's exception, subject to Chapter X procedure. The normal bar on input credit for exempted goods did not apply in this setting, because insisting on duty payment and reversal of credit would defeat the notification's purpose and merely shift the credit chain to the receiving unit. On that reasoning, the duty demand and penalty were not sustainable and were set aside. en-us Fri, 13 Jan 2006 00:00:00 +0530 Tue, 19 Jun 2012 10:45:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=116936 Intermediate products cleared to another unit under Notification No. 217/86-C.E. for further manufacture of dutiable final products were held eligible for the notification's exception, subject to Chapter X procedure. The normal bar on input credit for exempted goods did not apply in this setting, because insisting on duty payment and reversal of credit would defeat the notification's purpose and merely shift the credit chain to the receiving unit. On that reasoning, the duty demand and penalty were not sustainable and were set aside. Case-Laws Central Excise Fri, 13 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=116936