https://www.taxtmi.com/caselaws?id=33071 Modvat credit on duty-paid molasses used to manufacture rectified spirit was not required to be reversed merely because the rectified spirit was captively consumed in making exempted country liquor. The Tribunal applied Rule 57CC on the basis that captive clearance of exempted goods can be treated as a deemed sale, and the prescribed 8% reversal functions as a presumptive amount linked to the value of the exempted goods. Since the assessee had already reversed 8% of the price of rectified spirit on a comparable market-value basis, the absence of an actual factory-gate sale did not support any further demand for credit reversal. en-us Tue, 29 Jul 2008 00:00:00 +0530 Mon, 20 Apr 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33071 Modvat credit on duty-paid molasses used to manufacture rectified spirit was not required to be reversed merely because the rectified spirit was captively consumed in making exempted country liquor. The Tribunal applied Rule 57CC on the basis that captive clearance of exempted goods can be treated as a deemed sale, and the prescribed 8% reversal functions as a presumptive amount linked to the value of the exempted goods. Since the assessee had already reversed 8% of the price of rectified spirit on a comparable market-value basis, the absence of an actual factory-gate sale did not support any further demand for credit reversal. Case-Laws Central Excise Tue, 29 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33071