https://www.taxtmi.com/caselaws?id=44150 Where common inputs are used for both dutiable and exempt final products, Modvat credit is not denied merely because segregation was not maintained, if the credit attributable to exempt clearances is debited or reversed before removal of the exempt goods. The stated principle is that such a pre-removal debit deletes the earlier credit entry, so credit under Rule 57A is treated as not having been taken in relation to the exempt products. On that basis, the manufacturer could continue to claim exemption for the duty-free final products, and denial of the exemption was not sustainable. en-us Tue, 12 Dec 1995 00:00:00 +0530 Wed, 15 Oct 2025 16:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=44150 Where common inputs are used for both dutiable and exempt final products, Modvat credit is not denied merely because segregation was not maintained, if the credit attributable to exempt clearances is debited or reversed before removal of the exempt goods. The stated principle is that such a pre-removal debit deletes the earlier credit entry, so credit under Rule 57A is treated as not having been taken in relation to the exempt products. On that basis, the manufacturer could continue to claim exemption for the duty-free final products, and denial of the exemption was not sustainable. Case-Laws Central Excise Tue, 12 Dec 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=44150