https://www.taxtmi.com/caselaws?id=266657 Cenvat credit on inputs used in covered spandex yarn manufacture could not be denied once the final product was later re-classified as dutiable, even though the credit had been taken when the product was treated as exempt. The earlier reversal of the credit before the show cause notice supported restoration of the re-credit. The demand relating to credit utilisation was therefore unsustainable, and the penalty under Section 11AC was set aside. Penalty was, however, retained in modified form under the excise rules for improper credit utilisation. en-us Fri, 04 Sep 2015 00:00:00 +0530 Mon, 13 Feb 2017 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=266657 Cenvat credit on inputs used in covered spandex yarn manufacture could not be denied once the final product was later re-classified as dutiable, even though the credit had been taken when the product was treated as exempt. The earlier reversal of the credit before the show cause notice supported restoration of the re-credit. The demand relating to credit utilisation was therefore unsustainable, and the penalty under Section 11AC was set aside. Penalty was, however, retained in modified form under the excise rules for improper credit utilisation. Case-Laws Central Excise Fri, 04 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=266657