https://www.taxtmi.com/caselaws?id=172913 CENVAT credit taken on inputs used in the manufacture of wholly exempt goods was held inadmissible and recoverable, because the credit scheme allows input credit only where the final product is dutiable. The Tribunal followed the binding apex court view that credit cannot be retained for exempted clearances and rejected the assessee's contrary reliance. Penalty was, however, deleted because the dispute arose from interpretation of the MODVAT/CENVAT scheme and the facts did not justify punitive action. The demand therefore survived, but the penal component was set aside. en-us Thu, 18 Aug 2011 00:00:00 +0530 Thu, 03 Sep 2015 15:37:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172913 CENVAT credit taken on inputs used in the manufacture of wholly exempt goods was held inadmissible and recoverable, because the credit scheme allows input credit only where the final product is dutiable. The Tribunal followed the binding apex court view that credit cannot be retained for exempted clearances and rejected the assessee's contrary reliance. Penalty was, however, deleted because the dispute arose from interpretation of the MODVAT/CENVAT scheme and the facts did not justify punitive action. The demand therefore survived, but the penal component was set aside. Case-Laws Central Excise Thu, 18 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172913