https://www.taxtmi.com/caselaws?id=52487 Modvat credit on capital goods and inputs used in cotton yarn manufacture could not be denied merely because an exempt intermediate product, such as carded/combed cotton or sliver, emerged in the process. Rule 57R(2) protects credit where intermediate products arise during manufacture of a dutiable final product, and a later classification of the intermediate under Heading 52.02 did not alter that position. The reasoning also noted that the intermediate sliver was not marketable and that Board clarification supported admissibility of credit where exempt intermediates are captively consumed in producing dutiable goods. en-us Tue, 04 Nov 2003 00:00:00 +0530 Wed, 03 Jul 2024 19:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52487 Modvat credit on capital goods and inputs used in cotton yarn manufacture could not be denied merely because an exempt intermediate product, such as carded/combed cotton or sliver, emerged in the process. Rule 57R(2) protects credit where intermediate products arise during manufacture of a dutiable final product, and a later classification of the intermediate under Heading 52.02 did not alter that position. The reasoning also noted that the intermediate sliver was not marketable and that Board clarification supported admissibility of credit where exempt intermediates are captively consumed in producing dutiable goods. Case-Laws Central Excise Tue, 04 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52487