https://www.taxtmi.com/caselaws?id=119040 Modvat credit was held recoverable where inputs were diverted to research and development and the assessee failed to prove that the activity formed an integral part of manufacture or produced duty-paid final products. On the facts, the material on record supported diversion of inputs, and the plea against invocation of the extended period failed. The demand of credit and interest was therefore sustained. The penalties were treated as excessive: the assessee's penalty was reduced under the relevant rules, and the personal penalty on the managing director was set aside. en-us Fri, 03 Feb 2006 00:00:00 +0530 Sat, 07 Jul 2012 16:03:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119040 Modvat credit was held recoverable where inputs were diverted to research and development and the assessee failed to prove that the activity formed an integral part of manufacture or produced duty-paid final products. On the facts, the material on record supported diversion of inputs, and the plea against invocation of the extended period failed. The demand of credit and interest was therefore sustained. The penalties were treated as excessive: the assessee's penalty was reduced under the relevant rules, and the personal penalty on the managing director was set aside. Case-Laws Central Excise Fri, 03 Feb 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119040