https://www.taxtmi.com/caselaws?id=117951 Exemption under Notification No. 5/99-C.E. for dyed polyester yarn was considered in relation to the condition that no Modvat credit under Rules 57A, 57B or 57Q had been availed in the relevant process. The Tribunal held that denial of the exemption could not rest solely on earlier availment and utilisation of input and capital goods credit if the assessee later made payment fully compensating that credit. In that situation, the breach of the exemption condition stood neutralised, and the benefit of the notification remained available, subject to verification by the adjudicating authority that the later payment was adequate to offset the earlier credit. en-us Tue, 28 Feb 2006 00:00:00 +0530 Mon, 18 Mar 2024 18:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117951 Exemption under Notification No. 5/99-C.E. for dyed polyester yarn was considered in relation to the condition that no Modvat credit under Rules 57A, 57B or 57Q had been availed in the relevant process. The Tribunal held that denial of the exemption could not rest solely on earlier availment and utilisation of input and capital goods credit if the assessee later made payment fully compensating that credit. In that situation, the breach of the exemption condition stood neutralised, and the benefit of the notification remained available, subject to verification by the adjudicating authority that the later payment was adequate to offset the earlier credit. Case-Laws Central Excise Tue, 28 Feb 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117951