https://www.taxtmi.com/caselaws?id=115412 Rule 57AC of the Modvat scheme allowed the deferred 50% credit on capital goods because the credit had already accrued earlier and only its availment was postponed; later exemption of the final product did not, on the language of the rule, defeat that entitlement. Reversal of credit on common inputs, once made on being pointed out, removed the foundation for the demand, and the related penalty could not survive. The CESTAT accordingly treated the demand and penalty as unsustainable and set aside the order. en-us Tue, 12 Jul 2005 00:00:00 +0530 Tue, 29 May 2012 14:41:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115412 Rule 57AC of the Modvat scheme allowed the deferred 50% credit on capital goods because the credit had already accrued earlier and only its availment was postponed; later exemption of the final product did not, on the language of the rule, defeat that entitlement. Reversal of credit on common inputs, once made on being pointed out, removed the foundation for the demand, and the related penalty could not survive. The CESTAT accordingly treated the demand and penalty as unsustainable and set aside the order. Case-Laws Central Excise Tue, 12 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115412