https://www.taxtmi.com/caselaws?id=212643 Inadmissible CENVAT credit taken on inputs may be treated as effectively reversed where the same goods are later cleared on payment of duty after processing and value addition, because the duty payment is treated as substantively equivalent to reversal in a revenue-neutral situation. The article also notes that contravention of the credit provisions can still attract penalty despite that substantive adjustment. Accordingly, the credit dispute is treated as satisfied by the duty paid on clearance, while penal consequences remain available, though the penalty may be limited. 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 taken on inputs may be treated as effectively reversed where the same goods are later cleared on payment of duty after processing and value addition, because the duty payment is treated as substantively equivalent to reversal in a revenue-neutral situation. The article also notes that contravention of the credit provisions can still attract penalty despite that substantive adjustment. Accordingly, the credit dispute is treated as satisfied by the duty paid on clearance, while penal consequences remain available, though the penalty may be limited. Case-Laws Central Excise Tue, 05 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212643