https://www.taxtmi.com/caselaws?id=52377 Modvat credit on additional excise duty paid on duty-paid inputs used to manufacture dutiable tyres could not be denied merely because an intermediate product was exempt from that duty. The scheme restricted credit where the final product was exempt, not where only an intermediate stage product was exempt. The refusal to restore credit was therefore unsustainable, and unutilised credit relating to tyres exported under bond was refundable where adjustment against duty was not possible. The clarificatory notifications and circulars supported this treatment, and the refund rejection failed on the same incorrect premise as the credit denial. en-us Tue, 25 Nov 2003 00:00:00 +0530 Tue, 05 Oct 2010 15:01:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52377 Modvat credit on additional excise duty paid on duty-paid inputs used to manufacture dutiable tyres could not be denied merely because an intermediate product was exempt from that duty. The scheme restricted credit where the final product was exempt, not where only an intermediate stage product was exempt. The refusal to restore credit was therefore unsustainable, and unutilised credit relating to tyres exported under bond was refundable where adjustment against duty was not possible. The clarificatory notifications and circulars supported this treatment, and the refund rejection failed on the same incorrect premise as the credit denial. Case-Laws Central Excise Tue, 25 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52377