https://www.taxtmi.com/caselaws?id=53281 Modvat credit on capital goods could not be denied merely because combed/carded cotton (sliver) emerged as an intermediate product during manufacture, since earlier Tribunal rulings and the Delhi High Court view treated sliver as non-marketable and not excisable. Board clarification also supported that credit is not denied where capital goods are used in making an exempt intermediate product captively consumed in dutiable final products. The remand order was wide enough to permit reconsideration of the matter afresh, including marketability, so the original authority did not exceed its scope when examining Modvat credit on merits. The impugned order was set aside and the assessee's appeal was allowed. en-us Tue, 27 Jul 2004 00:00:00 +0530 Tue, 12 Oct 2010 13:18:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53281 Modvat credit on capital goods could not be denied merely because combed/carded cotton (sliver) emerged as an intermediate product during manufacture, since earlier Tribunal rulings and the Delhi High Court view treated sliver as non-marketable and not excisable. Board clarification also supported that credit is not denied where capital goods are used in making an exempt intermediate product captively consumed in dutiable final products. The remand order was wide enough to permit reconsideration of the matter afresh, including marketability, so the original authority did not exceed its scope when examining Modvat credit on merits. The impugned order was set aside and the assessee's appeal was allowed. Case-Laws Central Excise Tue, 27 Jul 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53281