https://www.taxtmi.com/caselaws?id=191470 Cenvat credit lawfully availed and utilised when final products were dutiable is not required to be reversed merely because those products later become exempt. The stated principle extends to credit relatable to inputs in stock, inputs contained in finished goods, and work in process, unless the governing rule expressly mandates reversal. A later exemption does not by itself create recoverability of credit already validly taken, and a demand raised solely on that basis cannot be sustained. The text also notes that the effect of a newly inserted sub-rule under the Cenvat Credit Rules, 2004 was not examined because that issue lay outside the reference. en-us Tue, 24 Feb 2009 00:00:00 +0530 Wed, 05 Apr 2017 10:14:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191470 Cenvat credit lawfully availed and utilised when final products were dutiable is not required to be reversed merely because those products later become exempt. The stated principle extends to credit relatable to inputs in stock, inputs contained in finished goods, and work in process, unless the governing rule expressly mandates reversal. A later exemption does not by itself create recoverability of credit already validly taken, and a demand raised solely on that basis cannot be sustained. The text also notes that the effect of a newly inserted sub-rule under the Cenvat Credit Rules, 2004 was not examined because that issue lay outside the reference. Case-Laws Central Excise Tue, 24 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191470