https://www.taxtmi.com/caselaws?id=204722 Where an excise exemption is conditioned on non-availment of Modvat credit, the assessee must prove that the inputs used for exempt clearances were not the very inputs on which credit had been taken. Rule 57CC(9) required separate inventory and accounts for inputs used in exempted goods, and the requirement of a "separate inventory" did not rule out physical segregation as a relevant compliance factor. The Court also noted that credit could not be taken on inputs and then those same inputs used for nil-rate clearances without satisfying the exemption condition. Because the authorities had not determined the exact extent of diversion of Modvatable inputs, the matter was remanded for fresh factual determination. en-us Thu, 07 Jul 2011 00:00:00 +0530 Wed, 22 Feb 2012 15:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204722 Where an excise exemption is conditioned on non-availment of Modvat credit, the assessee must prove that the inputs used for exempt clearances were not the very inputs on which credit had been taken. Rule 57CC(9) required separate inventory and accounts for inputs used in exempted goods, and the requirement of a "separate inventory" did not rule out physical segregation as a relevant compliance factor. The Court also noted that credit could not be taken on inputs and then those same inputs used for nil-rate clearances without satisfying the exemption condition. Because the authorities had not determined the exact extent of diversion of Modvatable inputs, the matter was remanded for fresh factual determination. Case-Laws Central Excise Thu, 07 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204722