https://www.taxtmi.com/caselaws?id=339445 Cenvat credit is admissible on inputs used to manufacture dutiable goods, and the fact that duty was later paid with interest on the final product does not by itself justify denial of credit. The note states that entitlement to credit follows the duty-paid character of the final product, even if proceedings were initiated earlier. Penalty under Section 11AC requires the statutory ingredients of suppression or mala fide intention to evade duty; in the absence of such an allegation in the show cause notice, the penalty cannot be sustained. The order allowing credit and dropping penalty was upheld. en-us Tue, 27 Dec 2016 00:00:00 +0530 Mon, 27 Feb 2017 10:57:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339445 Cenvat credit is admissible on inputs used to manufacture dutiable goods, and the fact that duty was later paid with interest on the final product does not by itself justify denial of credit. The note states that entitlement to credit follows the duty-paid character of the final product, even if proceedings were initiated earlier. Penalty under Section 11AC requires the statutory ingredients of suppression or mala fide intention to evade duty; in the absence of such an allegation in the show cause notice, the penalty cannot be sustained. The order allowing credit and dropping penalty was upheld. Case-Laws Central Excise Tue, 27 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339445