https://www.taxtmi.com/caselaws?id=44957 The Modvat credit scheme under the Central Excise Rules, 1944 is a statutory, self-contained framework for earning, taking and utilising credit, and it cannot be curtailed by executive instruction. Section 14AA of the Central Excise Act, 1944 contains its own safeguards for special audit, including a reason-to-believe standard and nomination by a senior officer. Accordingly, referral of units for cost audit did not justify a general bar on payment of duty out of Modvat credit pending receipt of the audit report, and the restrictive circular was held to be beyond power and unsustainable. en-us Mon, 23 Mar 1998 00:00:00 +0530 Wed, 07 Jul 2010 12:58:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=44957 The Modvat credit scheme under the Central Excise Rules, 1944 is a statutory, self-contained framework for earning, taking and utilising credit, and it cannot be curtailed by executive instruction. Section 14AA of the Central Excise Act, 1944 contains its own safeguards for special audit, including a reason-to-believe standard and nomination by a senior officer. Accordingly, referral of units for cost audit did not justify a general bar on payment of duty out of Modvat credit pending receipt of the audit report, and the restrictive circular was held to be beyond power and unsustainable. Case-Laws Central Excise Mon, 23 Mar 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=44957