https://www.taxtmi.com/caselaws?id=47297 Under the Modvat scheme, the value of inputs supplied free by the final-product manufacturer to a job worker was not required to be added to the assessable value of intermediate assemblies manufactured for onward use. The SC distinguished earlier authority on free supplies because that precedent did not involve Modvat-linked duty adjustment or the special treatment of intermediate goods. The scheme permitted credit adjustment at the stage of final clearance of the finished product, so the duty chain was not to be reconstructed by loading input value into the intermediate product. The related penalty also could not stand because it rested on the same unsustainable duty demand. en-us Thu, 17 Mar 2005 00:00:00 +0530 Mon, 22 Sep 2025 16:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=47297 Under the Modvat scheme, the value of inputs supplied free by the final-product manufacturer to a job worker was not required to be added to the assessable value of intermediate assemblies manufactured for onward use. The SC distinguished earlier authority on free supplies because that precedent did not involve Modvat-linked duty adjustment or the special treatment of intermediate goods. The scheme permitted credit adjustment at the stage of final clearance of the finished product, so the duty chain was not to be reconstructed by loading input value into the intermediate product. The related penalty also could not stand because it rested on the same unsustainable duty demand. Case-Laws Central Excise Thu, 17 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=47297