https://www.taxtmi.com/caselaws?id=48725 Modvat credit on inputs is barred where the final product is wholly exempt from duty or chargeable to nil rate under Rule 57C of the Central Excise Rules, 1944. The distinction between taking credit and later utilising it under Rule 57F(3)(i) does not override that statutory prohibition, because eligibility itself depends on the dutiability of the final product. Where inputs are used in exempt final products, any credit already taken is liable to reversal or recovery under Rule 57I. The earlier proforma credit decisions were considered, but the clear language of Rule 57C was held to prevail. en-us Wed, 01 Jun 1994 00:00:00 +0530 Fri, 10 Nov 2023 13:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=48725 Modvat credit on inputs is barred where the final product is wholly exempt from duty or chargeable to nil rate under Rule 57C of the Central Excise Rules, 1944. The distinction between taking credit and later utilising it under Rule 57F(3)(i) does not override that statutory prohibition, because eligibility itself depends on the dutiability of the final product. Where inputs are used in exempt final products, any credit already taken is liable to reversal or recovery under Rule 57I. The earlier proforma credit decisions were considered, but the clear language of Rule 57C was held to prevail. Case-Laws Central Excise Wed, 01 Jun 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=48725