https://www.taxtmi.com/caselaws?id=121365 Cenvat credit cannot be denied merely because exempted and dutiable goods were not manufactured simultaneously, where the assessee's overall manufacturing activity covered both categories. Credit validly taken on inputs already in stock is not required to be reversed only because the finished goods later became exempt. Scrap cleared on payment of duty also supports the view that the assessee was not engaged solely in exempt clearances for purposes of denying credit. On these principles, the demand, interest, and penalties could not survive, and relief followed for the assessee. en-us Fri, 09 Feb 2007 00:00:00 +0530 Fri, 02 Feb 2024 17:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121365 Cenvat credit cannot be denied merely because exempted and dutiable goods were not manufactured simultaneously, where the assessee's overall manufacturing activity covered both categories. Credit validly taken on inputs already in stock is not required to be reversed only because the finished goods later became exempt. Scrap cleared on payment of duty also supports the view that the assessee was not engaged solely in exempt clearances for purposes of denying credit. On these principles, the demand, interest, and penalties could not survive, and relief followed for the assessee. Case-Laws Central Excise Fri, 09 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121365