https://www.taxtmi.com/caselaws?id=52886 Modvat credit remained admissible where inputs used in manufacturing intermediate products had a clear nexus with dutiable final products, even if an exempt intermediate product emerged during the process; Rule 57D protected such credit from denial on that ground. However, restoration of credit already reversed was treated as requiring recourse to the refund mechanism under Section 11B, and in the absence of a refund claim the restoration was barred by limitation. Penalty under Rule 173Q was also sustained on the facts recorded. The net result was allowance of credit on the relevant inputs, but rejection of restoration of reversed credit and confirmation of penalty. en-us Mon, 22 Mar 2004 00:00:00 +0530 Fri, 08 Oct 2010 12:26:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52886 Modvat credit remained admissible where inputs used in manufacturing intermediate products had a clear nexus with dutiable final products, even if an exempt intermediate product emerged during the process; Rule 57D protected such credit from denial on that ground. However, restoration of credit already reversed was treated as requiring recourse to the refund mechanism under Section 11B, and in the absence of a refund claim the restoration was barred by limitation. Penalty under Rule 173Q was also sustained on the facts recorded. The net result was allowance of credit on the relevant inputs, but rejection of restoration of reversed credit and confirmation of penalty. Case-Laws Central Excise Mon, 22 Mar 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52886