https://www.taxtmi.com/caselaws?id=50669 Modvat credit on inputs used to manufacture polyester/polymer chips cleared without duty under Notification No. 214/86-C.E. could not be denied by a mechanical application of Rule 57C where the chips formed part of a job-work chain leading to dutiable final filament yarn. The Tribunal applied the principle that Rule 57C must be read in the context of the Modvat scheme and the integrated manufacturing arrangement, so intermediate nil-duty clearances do not break the credit chain when the final product is subjected to duty. On that basis, the credit disallowance and penalty were held unsustainable. en-us Fri, 16 Feb 2001 00:00:00 +0530 Tue, 06 Jan 2026 17:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=50669 Modvat credit on inputs used to manufacture polyester/polymer chips cleared without duty under Notification No. 214/86-C.E. could not be denied by a mechanical application of Rule 57C where the chips formed part of a job-work chain leading to dutiable final filament yarn. The Tribunal applied the principle that Rule 57C must be read in the context of the Modvat scheme and the integrated manufacturing arrangement, so intermediate nil-duty clearances do not break the credit chain when the final product is subjected to duty. On that basis, the credit disallowance and penalty were held unsustainable. Case-Laws Central Excise Fri, 16 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=50669