https://www.taxtmi.com/caselaws?id=203076 Cenvat credit on finished yarn lying in stock at the time of de-bonding was held inadmissible because the goods were finished products, not inputs used in or in relation to manufacture, so the credit demand was upheld. Interest was not payable where the wrongly taken credit was reversed on the same day as availment, leaving no continuing liability for use of credit. Penalty was also set aside because the availment and reversal were disclosed in the statutory returns, making penal action unjustified on the facts. The ratio stated that same-day reversal of inadmissible credit, coupled with disclosure in returns, may exclude interest and penalty even though the credit itself remains recoverable. en-us Wed, 07 Jul 2010 00:00:00 +0530 Wed, 04 May 2011 08:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203076 Cenvat credit on finished yarn lying in stock at the time of de-bonding was held inadmissible because the goods were finished products, not inputs used in or in relation to manufacture, so the credit demand was upheld. Interest was not payable where the wrongly taken credit was reversed on the same day as availment, leaving no continuing liability for use of credit. Penalty was also set aside because the availment and reversal were disclosed in the statutory returns, making penal action unjustified on the facts. The ratio stated that same-day reversal of inadmissible credit, coupled with disclosure in returns, may exclude interest and penalty even though the credit itself remains recoverable. Case-Laws Central Excise Wed, 07 Jul 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203076