https://www.taxtmi.com/caselaws?id=48909 Modvat credit validly taken and utilised while the final product was dutiable is not required to be reversed merely because the product is later exempted from duty. Credit becomes available on compliance with the prescribed declaration and may be used for duty payment; the rules provide reversal only where credit was illegally or irregularly taken. The text states that such credit is indefeasible, there is no necessary co-relation between the raw material and the final product, and a later exemption notification does not compel reversal once credit has been lawfully availed and used. The refund claim was therefore maintainable and the appeal was without merit. en-us Mon, 07 Jan 2002 00:00:00 +0530 Wed, 01 Oct 2025 21:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=48909 Modvat credit validly taken and utilised while the final product was dutiable is not required to be reversed merely because the product is later exempted from duty. Credit becomes available on compliance with the prescribed declaration and may be used for duty payment; the rules provide reversal only where credit was illegally or irregularly taken. The text states that such credit is indefeasible, there is no necessary co-relation between the raw material and the final product, and a later exemption notification does not compel reversal once credit has been lawfully availed and used. The refund claim was therefore maintainable and the appeal was without merit. Case-Laws Central Excise Mon, 07 Jan 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=48909