https://www.taxtmi.com/caselaws?id=207072 Cenvat credit on capital goods received in a duty exemption area is not to be disallowed where the goods were unusable, were never put to use, and the credit entries were reversed before removal. The commentary stresses that mere book entry of credit is insufficient for recovery when the Revenue cannot show actual utilisation of the credit before reversal. It further states that, on those facts, excise duty could not be demanded on removal of the machines, particularly because the unit operated in a duty exemption area and was not the manufacturer of the machines. en-us Fri, 30 Sep 2011 00:00:00 +0530 Mon, 01 Jun 2015 15:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=207072 Cenvat credit on capital goods received in a duty exemption area is not to be disallowed where the goods were unusable, were never put to use, and the credit entries were reversed before removal. The commentary stresses that mere book entry of credit is insufficient for recovery when the Revenue cannot show actual utilisation of the credit before reversal. It further states that, on those facts, excise duty could not be demanded on removal of the machines, particularly because the unit operated in a duty exemption area and was not the manufacturer of the machines. Case-Laws Central Excise Fri, 30 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=207072