https://www.taxtmi.com/caselaws?id=119003 Where a manufacturer uses Cenvat credit inputs in exempted goods cleared under a small-scale industry exemption, the assessee may choose either to reverse the input credit attributable to those goods or to pay duty on the exempted finished goods. The board instruction treated that choice as belonging to the assessee, not the revenue. Accordingly, departmental insistence on payment of 8% of the value of exempted goods under Rule 6(2) could not override a valid reversal of the credit. The proper course is to determine the exact quantum of credit required to be reversed and enforce that amount, with penalty consequences to be considered separately. en-us Mon, 09 Jan 2006 00:00:00 +0530 Sat, 07 Jul 2012 13:26:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119003 Where a manufacturer uses Cenvat credit inputs in exempted goods cleared under a small-scale industry exemption, the assessee may choose either to reverse the input credit attributable to those goods or to pay duty on the exempted finished goods. The board instruction treated that choice as belonging to the assessee, not the revenue. Accordingly, departmental insistence on payment of 8% of the value of exempted goods under Rule 6(2) could not override a valid reversal of the credit. The proper course is to determine the exact quantum of credit required to be reversed and enforce that amount, with penalty consequences to be considered separately. Case-Laws Central Excise Mon, 09 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119003