https://www.taxtmi.com/caselaws?id=273594 Where an assessee manufactures goods otherwise covered by an exemption but voluntarily pays duty on the clearances, Modvat credit on inputs used in manufacture cannot be denied on the ground of exemption. The controlling principle is revenue neutrality: if duty is discharged on the final products, denial of credit on inputs or capital goods is not justified. On that basis, the demand and penalty discussed in the note are unsustainable, and the article treats the issue as settled by Supreme Court authority relied upon in the order. en-us Thu, 10 Nov 2005 00:00:00 +0530 Wed, 04 Jul 2018 11:58:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=273594 Where an assessee manufactures goods otherwise covered by an exemption but voluntarily pays duty on the clearances, Modvat credit on inputs used in manufacture cannot be denied on the ground of exemption. The controlling principle is revenue neutrality: if duty is discharged on the final products, denial of credit on inputs or capital goods is not justified. On that basis, the demand and penalty discussed in the note are unsustainable, and the article treats the issue as settled by Supreme Court authority relied upon in the order. Case-Laws Central Excise Thu, 10 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=273594