https://www.taxtmi.com/caselaws?id=265709 When an assessee opts for area-based exemption under Notification No. 50/2003-CE, Cenvat credit validly taken on inputs while the final product was dutiable is not required to be reversed merely because the product later becomes exempt. The same principle applies to credit relatable to inputs contained in work-in-progress and finished goods lying in stock at the time exemption is opted for. The reasoning follows the view that subsequent exemption does not retrospectively undo credit lawfully earned and utilised. On that basis, reversal was not exigible and denial of refund was unsustainable. en-us Mon, 06 Jul 2015 00:00:00 +0530 Mon, 19 Oct 2015 12:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=265709 When an assessee opts for area-based exemption under Notification No. 50/2003-CE, Cenvat credit validly taken on inputs while the final product was dutiable is not required to be reversed merely because the product later becomes exempt. The same principle applies to credit relatable to inputs contained in work-in-progress and finished goods lying in stock at the time exemption is opted for. The reasoning follows the view that subsequent exemption does not retrospectively undo credit lawfully earned and utilised. On that basis, reversal was not exigible and denial of refund was unsustainable. Case-Laws Central Excise Mon, 06 Jul 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=265709