https://www.taxtmi.com/caselaws?id=338550 Cenvat credit attributable to inputs used in manufacturing goods that later became wholly exempt from Central Excise duty was held recoverable, because the credit scheme operates only where the final product bears duty and credit is not admissible for exempted goods. The Tribunal accepted that the applicable rules expressly supported reversal of wrongly utilised credit and distinguished earlier decisions based on the absence of a specific reversal provision. On penalty, it found the surrounding circumstances insufficient to justify penal action and set the penalty aside. The credit demand was therefore sustained, while the assessee obtained relief only on penalty. en-us Fri, 06 Jan 2017 00:00:00 +0530 Wed, 01 Mar 2017 12:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338550 Cenvat credit attributable to inputs used in manufacturing goods that later became wholly exempt from Central Excise duty was held recoverable, because the credit scheme operates only where the final product bears duty and credit is not admissible for exempted goods. The Tribunal accepted that the applicable rules expressly supported reversal of wrongly utilised credit and distinguished earlier decisions based on the absence of a specific reversal provision. On penalty, it found the surrounding circumstances insufficient to justify penal action and set the penalty aside. The credit demand was therefore sustained, while the assessee obtained relief only on penalty. Case-Laws Central Excise Fri, 06 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338550