https://www.taxtmi.com/caselaws?id=273594 Modvat credit on inputs and capital goods used to manufacture exempt final products remains available where the manufacturer voluntarily pays duty on those products. The voluntary duty payment makes the transaction revenue neutral, so denial of credit is not justified. Consequently, a demand seeking reversal or recovery of such credit, together with any related penalty, is unsustainable where the exempt goods were cleared on payment of duty. 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 Modvat credit on inputs and capital goods used to manufacture exempt final products remains available where the manufacturer voluntarily pays duty on those products. The voluntary duty payment makes the transaction revenue neutral, so denial of credit is not justified. Consequently, a demand seeking reversal or recovery of such credit, together with any related penalty, is unsustainable where the exempt goods were cleared on payment of duty. Case-Laws Central Excise Thu, 10 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=273594