https://www.taxtmi.com/caselaws?id=794701 Rule 57CC was treated as an adjustment provision for Modvat credit relating to exempted or nil-rated final products, but its mechanism was confined to inputs other than fuel. The Madras HC distinguished furnace oil used in manufacturing D.B.M., an intermediate product partly captively consumed and partly stock-transferred, from cases involving non-fuel inputs. Where the fuel was used to produce D.B.M. and the downstream final products were dutiable, the credit chain did not require reversal merely because D.B.M. itself was exempt or cleared without sale. Credit on furnace oil was therefore not liable to be reversed, and the assessee succeeded. en-us Thu, 25 Jun 2026 00:00:00 +0530 Fri, 10 Jul 2026 07:39:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794701 Rule 57CC was treated as an adjustment provision for Modvat credit relating to exempted or nil-rated final products, but its mechanism was confined to inputs other than fuel. The Madras HC distinguished furnace oil used in manufacturing D.B.M., an intermediate product partly captively consumed and partly stock-transferred, from cases involving non-fuel inputs. Where the fuel was used to produce D.B.M. and the downstream final products were dutiable, the credit chain did not require reversal merely because D.B.M. itself was exempt or cleared without sale. Credit on furnace oil was therefore not liable to be reversed, and the assessee succeeded. Case-Laws Central Excise Thu, 25 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794701