https://www.taxtmi.com/caselaws?id=122247 On opting out of the Modvat scheme and availing exemption, reversal under Rule 57AG(2) extends only to credit on inputs lying in stock or contained in finished goods when the option is exercised. Credit attributable to waste parings is outside that reversal obligation because waste is not treated as finished goods for this purpose, so no reversal was required on that component. Credit attributable to compounded rubber had to be reversed because it was treated as a usable intermediate product with shelf life and as an input in the manufacture of tread rubber, bringing it within the scope of Rule 57AG(2). en-us Fri, 23 Feb 2007 00:00:00 +0530 Thu, 09 Aug 2012 16:46:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122247 On opting out of the Modvat scheme and availing exemption, reversal under Rule 57AG(2) extends only to credit on inputs lying in stock or contained in finished goods when the option is exercised. Credit attributable to waste parings is outside that reversal obligation because waste is not treated as finished goods for this purpose, so no reversal was required on that component. Credit attributable to compounded rubber had to be reversed because it was treated as a usable intermediate product with shelf life and as an input in the manufacture of tread rubber, bringing it within the scope of Rule 57AG(2). Case-Laws Central Excise Fri, 23 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122247