https://www.taxtmi.com/caselaws?id=1143 Valid Cenvat/Modvat credit taken on inputs while the final product was dutiable remained usable even after the finished goods later became exempt. The applicable principle was that lawfully availed credit is indefeasible, without any requirement of one-to-one co-relation between inputs and final output, and later exemption does not by itself create a liability to reverse such credit. A contrary line of authority was treated as inapplicable, and the prior dismissal of a challenge to the Larger Bench view without a speaking order did not alter the governing rule. The proposed recovery of duty, interest, and penalty was therefore unsustainable, and reversal was not warranted. en-us Thu, 23 Nov 2006 00:00:00 +0530 Mon, 14 Apr 2008 11:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1143 Valid Cenvat/Modvat credit taken on inputs while the final product was dutiable remained usable even after the finished goods later became exempt. The applicable principle was that lawfully availed credit is indefeasible, without any requirement of one-to-one co-relation between inputs and final output, and later exemption does not by itself create a liability to reverse such credit. A contrary line of authority was treated as inapplicable, and the prior dismissal of a challenge to the Larger Bench view without a speaking order did not alter the governing rule. The proposed recovery of duty, interest, and penalty was therefore unsustainable, and reversal was not warranted. Case-Laws Central Excise Thu, 23 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1143