https://www.taxtmi.com/caselaws?id=270411 Rule 57CC, not Rule 57C, governed the credit consequence for duty-paid yarn used in manufacturing grey fabrics falling under Chapters 50 to 63. Because the composite mill used both in-house yarn and duty-paid locally procured yarn, the premise for denying credit and demanding a percentage of clearances was incorrect, and only the credit attributable to inputs contained in the final products was relevant. Actual export of the grey fabrics was not defeated merely because no bond or letter of undertaking was executed, where export had in fact taken place. The demand, interest and penalties were therefore unsustainable. en-us Tue, 01 Dec 2015 00:00:00 +0530 Wed, 06 Jan 2016 09:56:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=270411 Rule 57CC, not Rule 57C, governed the credit consequence for duty-paid yarn used in manufacturing grey fabrics falling under Chapters 50 to 63. Because the composite mill used both in-house yarn and duty-paid locally procured yarn, the premise for denying credit and demanding a percentage of clearances was incorrect, and only the credit attributable to inputs contained in the final products was relevant. Actual export of the grey fabrics was not defeated merely because no bond or letter of undertaking was executed, where export had in fact taken place. The demand, interest and penalties were therefore unsustainable. Case-Laws Central Excise Tue, 01 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=270411