https://www.taxtmi.com/caselaws?id=3048 Captive use of inputs in the manufacture of exempt intermediate products does not by itself defeat exemption under Notification No. 67/95 or Modvat credit where those intermediates are consumed within the factory in producing dutiable final goods. Items used only for repair and maintenance of machinery, such as welding electrodes and flux, are not eligible for credit, but gases used in actual manufacturing operations and graphite electrodes used in production are treated differently. Procedural defects, including filing declarations under the wrong rule or not at the material time, do not by themselves bar credit where receipt and use are otherwise proper. Paints and varnishes were creditable only from 01.03.1997, and penalties were considered unwarranted in this interpretative dispute. en-us Tue, 17 Jul 2007 00:00:00 +0530 Mon, 15 Sep 2025 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3048 Captive use of inputs in the manufacture of exempt intermediate products does not by itself defeat exemption under Notification No. 67/95 or Modvat credit where those intermediates are consumed within the factory in producing dutiable final goods. Items used only for repair and maintenance of machinery, such as welding electrodes and flux, are not eligible for credit, but gases used in actual manufacturing operations and graphite electrodes used in production are treated differently. Procedural defects, including filing declarations under the wrong rule or not at the material time, do not by themselves bar credit where receipt and use are otherwise proper. Paints and varnishes were creditable only from 01.03.1997, and penalties were considered unwarranted in this interpretative dispute. Case-Laws Central Excise Tue, 17 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3048