https://www.taxtmi.com/caselaws?id=4488 CESTAT held that Rule 6(3) of the Cenvat Credit Rules, 2002 could not sustain a demand where the inputs on which credit was taken were used exclusively in exempted final products and were not shown to have been used in dutiable products. On those facts, Rule 6(2) was inapplicable and the governing restriction was Rule 6(1), which bars credit on inputs used in exempted output. Because the entire credit had already been reversed with interest, no recoverable liability survived in relation to those exempted products. The demand was therefore unsustainable and the issue was decided in favour of the assessee. en-us Wed, 06 Feb 2008 00:00:00 +0530 Wed, 09 Jul 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4488 CESTAT held that Rule 6(3) of the Cenvat Credit Rules, 2002 could not sustain a demand where the inputs on which credit was taken were used exclusively in exempted final products and were not shown to have been used in dutiable products. On those facts, Rule 6(2) was inapplicable and the governing restriction was Rule 6(1), which bars credit on inputs used in exempted output. Because the entire credit had already been reversed with interest, no recoverable liability survived in relation to those exempted products. The demand was therefore unsustainable and the issue was decided in favour of the assessee. Case-Laws Central Excise Wed, 06 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4488