https://www.taxtmi.com/caselaws?id=53122 Modvat credit was described as unavailable for inputs used in trial production where the manufactured goods were found defective, destroyed, and not recorded in excise records or intimated to the department, because Rule 57D applies only to waste, refuse, by-products, or inputs becoming waste during manufacture. The commentary also states that penalty and interest were not sustainable where the disputed credit was reversed before issuance of the show cause notice, following the principle of voluntary payment before notice. The stated result was that the credit demand survived, while penalty and interest were deleted. en-us Tue, 03 Aug 2004 00:00:00 +0530 Mon, 11 Oct 2010 10:28:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53122 Modvat credit was described as unavailable for inputs used in trial production where the manufactured goods were found defective, destroyed, and not recorded in excise records or intimated to the department, because Rule 57D applies only to waste, refuse, by-products, or inputs becoming waste during manufacture. The commentary also states that penalty and interest were not sustainable where the disputed credit was reversed before issuance of the show cause notice, following the principle of voluntary payment before notice. The stated result was that the credit demand survived, while penalty and interest were deleted. Case-Laws Central Excise Tue, 03 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53122