https://www.taxtmi.com/caselaws?id=45919 Modvat credit validly taken on inputs was not required to be reversed merely because part of the finished goods was later cleared without payment of duty under an exemption notification. Rule 57C applied only where the final product was wholly exempt or chargeable at nil rate when credit was taken, while Rule 57F governed utilisation of valid credit and Rule 57-I applied only to credit wrongly or irregularly taken. The settled principle applied was that valid credit remains available for utilisation unless it was illegally taken, so the credit was upheld as not liable to reversal. en-us Wed, 07 Feb 2001 00:00:00 +0530 Mon, 05 Jan 2026 23:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=45919 Modvat credit validly taken on inputs was not required to be reversed merely because part of the finished goods was later cleared without payment of duty under an exemption notification. Rule 57C applied only where the final product was wholly exempt or chargeable at nil rate when credit was taken, while Rule 57F governed utilisation of valid credit and Rule 57-I applied only to credit wrongly or irregularly taken. The settled principle applied was that valid credit remains available for utilisation unless it was illegally taken, so the credit was upheld as not liable to reversal. Case-Laws Central Excise Wed, 07 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=45919