https://www.taxtmi.com/caselaws?id=121883 Rule 3(3)(b) of the Cenvat Credit Rules, 2004 permits reversal or payment of an amount equal only to the credit originally taken on inputs removed as such or after partial processing. On removal of sheet metal parts after partial processing and E.D. coating, the operative question was whether duty could be demanded on the processed value or whether only the input credit had to be reversed. The provision was applied to the Cenvat scheme itself, not as a case of manufacture of a new product. As no credit had been taken on the coating materials, reversal of the credit on the inputs alone satisfied the rule, and the earlier view was treated as inapplicable after amendment. en-us Mon, 28 May 2007 00:00:00 +0530 Mon, 06 Aug 2012 18:43:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121883 Rule 3(3)(b) of the Cenvat Credit Rules, 2004 permits reversal or payment of an amount equal only to the credit originally taken on inputs removed as such or after partial processing. On removal of sheet metal parts after partial processing and E.D. coating, the operative question was whether duty could be demanded on the processed value or whether only the input credit had to be reversed. The provision was applied to the Cenvat scheme itself, not as a case of manufacture of a new product. As no credit had been taken on the coating materials, reversal of the credit on the inputs alone satisfied the rule, and the earlier view was treated as inapplicable after amendment. Case-Laws Central Excise Mon, 28 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121883