https://www.taxtmi.com/caselaws?id=337460 For the period before 01.03.2007, Cenvat credit on inputs contained in finished and semi-finished goods in stock was not required to be reversed merely because the assessee opted to clear final products under exemption notifications. Rule 11(3), which introduced such reversal liability, came into force only from 01.03.2007 and was not applicable to the dispute period. The settled principle applied was that validly availed Cenvat credit cannot be denied simply because the final product later becomes exempt, and direct co-relation between a particular input and the goods ultimately cleared was not required. The demand for reversal, interest, and penalty was therefore unsustainable. en-us Thu, 01 Dec 2016 00:00:00 +0530 Mon, 20 Feb 2017 14:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337460 For the period before 01.03.2007, Cenvat credit on inputs contained in finished and semi-finished goods in stock was not required to be reversed merely because the assessee opted to clear final products under exemption notifications. Rule 11(3), which introduced such reversal liability, came into force only from 01.03.2007 and was not applicable to the dispute period. The settled principle applied was that validly availed Cenvat credit cannot be denied simply because the final product later becomes exempt, and direct co-relation between a particular input and the goods ultimately cleared was not required. The demand for reversal, interest, and penalty was therefore unsustainable. Case-Laws Central Excise Thu, 01 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337460