https://www.taxtmi.com/caselaws?id=877 Recovery of the price of exempted goods was not sustainable where no statutory provision authorised such demand. The binding Board circular clarified that, in cases of incorrect availment of input credit, the department could recover only the wrongly availed Modvat credit and not an equivalent percentage of the exempted goods' price. Rule 57CC of the Central Excise Rules, 1944, and Section 11A of the Central Excise Act, 1944 did not support recovery of the 8% amount itself. The operative effect was limited to reversal of the related credit, and the Revenue's appeal failed. en-us Tue, 27 Jun 2006 00:00:00 +0530 Sun, 13 Apr 2008 18:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=877 Recovery of the price of exempted goods was not sustainable where no statutory provision authorised such demand. The binding Board circular clarified that, in cases of incorrect availment of input credit, the department could recover only the wrongly availed Modvat credit and not an equivalent percentage of the exempted goods' price. Rule 57CC of the Central Excise Rules, 1944, and Section 11A of the Central Excise Act, 1944 did not support recovery of the 8% amount itself. The operative effect was limited to reversal of the related credit, and the Revenue's appeal failed. Case-Laws Central Excise Tue, 27 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=877