https://www.taxtmi.com/caselaws?id=1370 Where Cenvat credit on inputs used for exempted goods is reversed with interest before those goods are removed, the assessee is treated as if credit had not been availed. Applying the Chandrapur Magnet Wires principle, the obligation to pay the amount prescribed under Rule 6 for failure to maintain separate inventories does not survive after such pre-clearance reversal. The contrary Revenue authority was distinguishable because the credit had not been reversed there. On that footing, the demand under Rule 6 could not be sustained and the assessee was not liable to pay the percentage amount on the exempted goods. en-us Tue, 19 Dec 2006 00:00:00 +0530 Mon, 14 Apr 2008 17:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1370 Where Cenvat credit on inputs used for exempted goods is reversed with interest before those goods are removed, the assessee is treated as if credit had not been availed. Applying the Chandrapur Magnet Wires principle, the obligation to pay the amount prescribed under Rule 6 for failure to maintain separate inventories does not survive after such pre-clearance reversal. The contrary Revenue authority was distinguishable because the credit had not been reversed there. On that footing, the demand under Rule 6 could not be sustained and the assessee was not liable to pay the percentage amount on the exempted goods. Case-Laws Central Excise Tue, 19 Dec 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1370