https://www.taxtmi.com/caselaws?id=52210 An amount reversed or paid under Rule 57CC of the Central Excise Rules, 1944 for common inputs used in both dutiable and exempted final products is treated as a statutory adjustment amount, not as excise duty. Because the scheme characterises it as an amount payable and the adjustment breaks the Modvat chain, it cannot be treated as duty available for recovery under Section 11D of the Central Excise Act, 1944 merely because it was collected from customers. The stated legal effect is that Section 11D is not attracted to such reversals, and departmental recovery on that basis cannot be sustained. en-us Wed, 01 Jan 2003 00:00:00 +0530 Mon, 04 Oct 2010 12:01:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52210 An amount reversed or paid under Rule 57CC of the Central Excise Rules, 1944 for common inputs used in both dutiable and exempted final products is treated as a statutory adjustment amount, not as excise duty. Because the scheme characterises it as an amount payable and the adjustment breaks the Modvat chain, it cannot be treated as duty available for recovery under Section 11D of the Central Excise Act, 1944 merely because it was collected from customers. The stated legal effect is that Section 11D is not attracted to such reversals, and departmental recovery on that basis cannot be sustained. Case-Laws Central Excise Wed, 01 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52210