https://www.taxtmi.com/caselaws?id=47028 Duty-paid inputs used to manufacture intermediate parts may qualify for Modvat credit when those parts are transferred between factories of the same manufacturer and are ultimately consumed in making a dutiable final product. The text explains that the notification allowed input use in another factory of the same manufacturer, and Rule 57D(2) prevented denial of credit merely because intermediate products were exempt or not duty-paid, so long as duty was paid on the end-product. Credit is not available where the parts are sold in the open market or used in tractors on which no duty is paid. The scheme's object is to avoid cascading duty, not to defeat credit for intermediate manufacture. en-us Wed, 25 Aug 2004 00:00:00 +0530 Tue, 23 Sep 2025 20:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=47028 Duty-paid inputs used to manufacture intermediate parts may qualify for Modvat credit when those parts are transferred between factories of the same manufacturer and are ultimately consumed in making a dutiable final product. The text explains that the notification allowed input use in another factory of the same manufacturer, and Rule 57D(2) prevented denial of credit merely because intermediate products were exempt or not duty-paid, so long as duty was paid on the end-product. Credit is not available where the parts are sold in the open market or used in tractors on which no duty is paid. The scheme's object is to avoid cascading duty, not to defeat credit for intermediate manufacture. Case-Laws Central Excise Wed, 25 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=47028