https://www.taxtmi.com/caselaws?id=54359 An unconditional exemption notification forms part of the taxing scheme, so an assessee cannot ignore a full exemption and pay duty at the tariff rate to claim Modvat credit on inputs. Where the final product is wholly exempt from excise duty, Rule 57C bars such credit, and the disallowance was upheld. Penalty, however, was not sustainable because the dispute involved interpretation of the exemption and Modvat provisions and earlier decisions had taken contrary views; the penal component was therefore set aside. en-us Mon, 11 Apr 2005 00:00:00 +0530 Tue, 19 Oct 2010 15:34:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54359 An unconditional exemption notification forms part of the taxing scheme, so an assessee cannot ignore a full exemption and pay duty at the tariff rate to claim Modvat credit on inputs. Where the final product is wholly exempt from excise duty, Rule 57C bars such credit, and the disallowance was upheld. Penalty, however, was not sustainable because the dispute involved interpretation of the exemption and Modvat provisions and earlier decisions had taken contrary views; the penal component was therefore set aside. Case-Laws Central Excise Mon, 11 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54359