Modvat taken on duty paid inputs whether can be used for payment of duty on similar goods manufacturing out of non-duty paid inputs

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....taken on duty paid inputs whether can be used for payment of duty on similar goods manufacturing out of non-duty paid inputs Circular No. 40/89-CX.8 Dated 23-8-1989 [From F. No. 261/72/16/87-CX.8] ....