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2016 (11) TMI 47 - AT - Central ExciseDenial of CENVAT credit/MODVAT credit - final product exempt - Held that: - the provisions of Modvat were embodied in the Rule 57 A of the Central Excise Rules, which provided for allowing modvat credit on the inputs used in the final products charged to duty. In this case I find that undisputedly the duty has been paid on the final products manufactured by the appellants; though the products have subsequently been held as exempted. Further I find that even if the product was classified as exempted; the appellants were forbidden from claiming refund by the High Court. Therefore denial of Modvat is not justifiable; while the appellants were required to pay on the final products. It would also be discriminatory and contrary to the provisions of Rule 57 A. As such the Order-In-Original is not sustainable and the appellants are eligible to the modvat credit - denial of credit not justified - appeal rejected - decided against Revenue.
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