https://www.taxtmi.com/caselaws?id=51635 Reversal of Modvat credit before clearance of exempted wrist watches was treated as equivalent to non-availment of credit, so a demand of 8% of the value of exempted clearances under Rule 57AD(2)(b) could not be sustained for want of a recoverable basis. The separate demand on wrist watch cases lying in stock was upheld because the assessee failed to dislodge the finding that the stock-related liability remained payable. As the principal duty demand on exempted wrist watches failed, the connected penalties under Rule 57AH(2), Section 11AC and Rule 209A were set aside, except that the stock demand survived. en-us Tue, 03 Dec 2002 00:00:00 +0530 Mon, 27 Sep 2010 12:20:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51635 Reversal of Modvat credit before clearance of exempted wrist watches was treated as equivalent to non-availment of credit, so a demand of 8% of the value of exempted clearances under Rule 57AD(2)(b) could not be sustained for want of a recoverable basis. The separate demand on wrist watch cases lying in stock was upheld because the assessee failed to dislodge the finding that the stock-related liability remained payable. As the principal duty demand on exempted wrist watches failed, the connected penalties under Rule 57AH(2), Section 11AC and Rule 209A were set aside, except that the stock demand survived. Case-Laws Central Excise Tue, 03 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51635