https://www.taxtmi.com/caselaws?id=325433 The Tribunal held that CENVAT credit on capital goods used for manufacturing both exempted and dutiable goods should not be denied solely based on usage order. Reversal of impugned credit before the Show Cause Notice indicated no malintent, and simultaneous application of relevant Notifications could have prevented the dispute. Penalty imposition was deemed unnecessary given the circumstances. The case was remanded for further examination of the appellant's duty payment claim and proper credit allowance based on capital goods usage. The judgment underscored the significance of intent and usage in determining CENVAT credit admissibility and cautioned against hasty penalty imposition. en-us Thu, 25 Feb 2016 00:00:00 +0530 Sat, 19 Mar 2016 08:52:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325433 The Tribunal held that CENVAT credit on capital goods used for manufacturing both exempted and dutiable goods should not be denied solely based on usage order. Reversal of impugned credit before the Show Cause Notice indicated no malintent, and simultaneous application of relevant Notifications could have prevented the dispute. Penalty imposition was deemed unnecessary given the circumstances. The case was remanded for further examination of the appellant's duty payment claim and proper credit allowance based on capital goods usage. The judgment underscored the significance of intent and usage in determining CENVAT credit admissibility and cautioned against hasty penalty imposition. Case-Laws Central Excise Thu, 25 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325433