https://www.taxtmi.com/caselaws?id=54364 Rule 57CC required a manufacturer clearing exempted final products to either pay an amount equal to 8% of the sale price of such goods or maintain separate inventory and accounts for inputs used in their manufacture and forgo Modvat credit on those inputs. The absence of a specific recovery provision did not dilute that substantive obligation. Modvat credit operates as a set-off against duty on dutiable products, so credit could not be retained for exempted goods without compliance. The demand was therefore sustainable and the appeal failed. en-us Tue, 31 May 2005 00:00:00 +0530 Tue, 19 Oct 2010 16:01:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54364 Rule 57CC required a manufacturer clearing exempted final products to either pay an amount equal to 8% of the sale price of such goods or maintain separate inventory and accounts for inputs used in their manufacture and forgo Modvat credit on those inputs. The absence of a specific recovery provision did not dilute that substantive obligation. Modvat credit operates as a set-off against duty on dutiable products, so credit could not be retained for exempted goods without compliance. The demand was therefore sustainable and the appeal failed. Case-Laws Central Excise Tue, 31 May 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54364