https://www.taxtmi.com/caselaws?id=152149 Unutilised Cenvat credit lawfully taken on duty-paid inputs did not lapse when a domestic tariff area unit converted into a 100% export oriented unit, because the applicable Cenvat Credit Rules and Central Excise Rules contained no provision requiring reversal of valid credit merely on conversion. The earlier circular treating unutilised Modvat credit as lapsing was treated as inapplicable under the later statutory and transitional framework. As no rule mandated reversal of the credit balance, the demand based on that balance and the connected penalties could not be sustained. en-us Mon, 18 May 2009 00:00:00 +0530 Mon, 10 Nov 2025 16:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152149 Unutilised Cenvat credit lawfully taken on duty-paid inputs did not lapse when a domestic tariff area unit converted into a 100% export oriented unit, because the applicable Cenvat Credit Rules and Central Excise Rules contained no provision requiring reversal of valid credit merely on conversion. The earlier circular treating unutilised Modvat credit as lapsing was treated as inapplicable under the later statutory and transitional framework. As no rule mandated reversal of the credit balance, the demand based on that balance and the connected penalties could not be sustained. Case-Laws Central Excise Mon, 18 May 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152149