https://www.taxtmi.com/caselaws?id=54156 Modvat credit on capital goods used to manufacture dutiable cotton yarn remained admissible despite incidental generation of cotton waste or hard waste cleared without duty. The term "exclusively" in Rule 57T(2) was interpreted to mean that capital goods are barred only when confined solely to exempt production, not when exempt waste arises as an incidental by-product during manufacture of dutiable goods. Hard waste was treated as waste arising in the process, not a separate final product under Rule 57R. Credit was therefore not denied merely because non-duty-paid waste emerged alongside dutiable output. en-us Mon, 28 Mar 2005 00:00:00 +0530 Mon, 18 Oct 2010 12:48:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54156 Modvat credit on capital goods used to manufacture dutiable cotton yarn remained admissible despite incidental generation of cotton waste or hard waste cleared without duty. The term "exclusively" in Rule 57T(2) was interpreted to mean that capital goods are barred only when confined solely to exempt production, not when exempt waste arises as an incidental by-product during manufacture of dutiable goods. Hard waste was treated as waste arising in the process, not a separate final product under Rule 57R. Credit was therefore not denied merely because non-duty-paid waste emerged alongside dutiable output. Case-Laws Central Excise Mon, 28 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54156