https://www.taxtmi.com/caselaws?id=202005 Deemed credit under Notification No. 35/2003-Central Excise (N.T.) was admissible on grey fabrics declared as inputs lying in stock, because the decisive question was their character when credit was taken. The notification covered inputs in stock, in process, and inputs contained in finished goods, and did not authorise denial or reversal merely because some inputs were later cleared as such. A later disposal event could not retrospectively defeat credit validly availed on stock inputs. The demand for reversal and penalty was therefore unsustainable, and relief was granted to the assessee. en-us Fri, 17 Sep 2010 00:00:00 +0530 Mon, 14 Feb 2011 16:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=202005 Deemed credit under Notification No. 35/2003-Central Excise (N.T.) was admissible on grey fabrics declared as inputs lying in stock, because the decisive question was their character when credit was taken. The notification covered inputs in stock, in process, and inputs contained in finished goods, and did not authorise denial or reversal merely because some inputs were later cleared as such. A later disposal event could not retrospectively defeat credit validly availed on stock inputs. The demand for reversal and penalty was therefore unsustainable, and relief was granted to the assessee. Case-Laws Central Excise Fri, 17 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202005