https://www.taxtmi.com/caselaws?id=1354 Where validly availed Cenvat credit relates to inputs in stock or embedded in finished goods when the final product becomes exempt, the credit is reversible if unutilized and recoverable if already utilized, because the inputs are then deemed to have gone into exempted clearances. Interest follows from the statutory date when the credit becomes reversible or recoverable, not from an earlier point. Penalty is not automatic in a bona fide interpretative dispute over Modvat/Cenvat consequences, and may be set aside where the issue turns on construction of the credit provisions and binding precedent. en-us Thu, 01 Feb 2007 00:00:00 +0530 Wed, 28 Jan 2009 21:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1354 Where validly availed Cenvat credit relates to inputs in stock or embedded in finished goods when the final product becomes exempt, the credit is reversible if unutilized and recoverable if already utilized, because the inputs are then deemed to have gone into exempted clearances. Interest follows from the statutory date when the credit becomes reversible or recoverable, not from an earlier point. Penalty is not automatic in a bona fide interpretative dispute over Modvat/Cenvat consequences, and may be set aside where the issue turns on construction of the credit provisions and binding precedent. Case-Laws Central Excise Thu, 01 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1354