https://www.taxtmi.com/caselaws?id=206727 CENVAT credit validly taken on inputs is not required to be reversed merely because the final product later becomes exempt from excise duty, since credit eligibility is determined when it is availed and Rule 6(1) applies only to inputs used in exempted goods. Rule 9(2) does not authorise reversal of lawfully earned credit, and the principle of indefeasible credit means there is no necessary co-relation between particular inputs and the later exempt product. Where unutilized credit cannot be absorbed against duty liability after exemption, cash refund may be allowed so the benefit does not become illusory. en-us Tue, 18 Oct 2011 00:00:00 +0530 Wed, 14 Oct 2015 10:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206727 CENVAT credit validly taken on inputs is not required to be reversed merely because the final product later becomes exempt from excise duty, since credit eligibility is determined when it is availed and Rule 6(1) applies only to inputs used in exempted goods. Rule 9(2) does not authorise reversal of lawfully earned credit, and the principle of indefeasible credit means there is no necessary co-relation between particular inputs and the later exempt product. Where unutilized credit cannot be absorbed against duty liability after exemption, cash refund may be allowed so the benefit does not become illusory. Case-Laws Central Excise Tue, 18 Oct 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206727