https://www.taxtmi.com/caselaws?id=121249 Modvat credit under Rule 57A of the Central Excise Rules, 1944 is admissible on duty actually paid on inputs, not on merely notional duty. Where the input manufacturer had paid duty and did not seek any refund, a later commercial adjustment through debit notes on reduction in input value was treated as a contractual matter between the parties and did not by itself require reversal of credit. The reasoning also noted absence of revenue loss, so the demand and penalty could not be sustained. en-us Thu, 15 Mar 2007 00:00:00 +0530 Fri, 27 Jul 2012 17:15:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121249 Modvat credit under Rule 57A of the Central Excise Rules, 1944 is admissible on duty actually paid on inputs, not on merely notional duty. Where the input manufacturer had paid duty and did not seek any refund, a later commercial adjustment through debit notes on reduction in input value was treated as a contractual matter between the parties and did not by itself require reversal of credit. The reasoning also noted absence of revenue loss, so the demand and penalty could not be sustained. Case-Laws Central Excise Thu, 15 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121249