https://www.taxtmi.com/caselaws?id=252505 CENVAT credit attributable to inputs used in manufacturing an exempted or nil-rated final product cannot be retained merely because the finished goods were lost, wasted during storage, or not physically cleared from the factory. The Court held that the credit scheme is intended to prevent cascading only for dutiable output, so duty-paid input credit must be proportionately reversed when those inputs are used for exempted manufacture. The manner of loss, including evaporation or storage wastage, did not change the character of the exempted product or justify retention of credit. en-us Tue, 26 Aug 2014 00:00:00 +0530 Sat, 06 Jun 2015 15:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252505 CENVAT credit attributable to inputs used in manufacturing an exempted or nil-rated final product cannot be retained merely because the finished goods were lost, wasted during storage, or not physically cleared from the factory. The Court held that the credit scheme is intended to prevent cascading only for dutiable output, so duty-paid input credit must be proportionately reversed when those inputs are used for exempted manufacture. The manner of loss, including evaporation or storage wastage, did not change the character of the exempted product or justify retention of credit. Case-Laws Central Excise Tue, 26 Aug 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252505