https://www.taxtmi.com/caselaws?id=212643 Inadmissible CENVAT credit on retained inputs may be treated as effectively reversed where the same goods are later cleared after value addition on payment of duty, provided the duty payment offsets the credit in substance and the transaction is revenue neutral. Separate reversal is not warranted in those circumstances. Contravention of credit provisions can nevertheless attract penalty despite effective reversal through duty payment. The discussion distinguishes resolution of the credit demand from penal liability: duty paid on clearance satisfies the reversal requirement, while a reduced penalty may remain for breach of the credit rules. en-us Tue, 05 Jul 2011 00:00:00 +0530 Thu, 10 Dec 2015 15:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=212643 Inadmissible CENVAT credit on retained inputs may be treated as effectively reversed where the same goods are later cleared after value addition on payment of duty, provided the duty payment offsets the credit in substance and the transaction is revenue neutral. Separate reversal is not warranted in those circumstances. Contravention of credit provisions can nevertheless attract penalty despite effective reversal through duty payment. The discussion distinguishes resolution of the credit demand from penal liability: duty paid on clearance satisfies the reversal requirement, while a reduced penalty may remain for breach of the credit rules. Case-Laws Central Excise Tue, 05 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212643