https://www.taxtmi.com/caselaws?id=31337 Cenvat credit on bought-out spares cleared from the factory on payment of duty was treated as effectively reversed where the duty was paid on their clearance on the sale price. On that factual basis, the Department could not ignore the duty already discharged on the same goods and demand a further reversal of the alleged ineligible credit. The stated settled view applied was that utilisation of credit for duty payment on the very goods in question operates as reversal of that credit, so a duplicate demand is not sustainable. The consequential interest and equivalent penalty also fell with the credit demand. en-us Thu, 08 May 2008 00:00:00 +0530 Mon, 27 Oct 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=31337 Cenvat credit on bought-out spares cleared from the factory on payment of duty was treated as effectively reversed where the duty was paid on their clearance on the sale price. On that factual basis, the Department could not ignore the duty already discharged on the same goods and demand a further reversal of the alleged ineligible credit. The stated settled view applied was that utilisation of credit for duty payment on the very goods in question operates as reversal of that credit, so a duplicate demand is not sustainable. The consequential interest and equivalent penalty also fell with the credit demand. Case-Laws Central Excise Thu, 08 May 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=31337