https://www.taxtmi.com/caselaws?id=763256 When a manufacturer opts for small scale industry exemption, credit attributable to returned goods treated as inputs and lying in stock on that date must be reversed under Rule 11(2) of the Cenvat Credit Rules, 2004. Rule 16(1) of the Central Excise Rules, 2002 allows duty credit on goods returned for remaking, refining or re-conditioning, but that credit remains subject to reversal once the exemption option is exercised in respect of inputs in stock, in process, or contained in finished goods. Later clearances on payment of duty after crossing the exemption limit do not alter the reversal liability arising on the date of opting for exemption. en-us Fri, 13 Dec 2024 00:00:00 +0530 Tue, 17 Dec 2024 08:42:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763256 When a manufacturer opts for small scale industry exemption, credit attributable to returned goods treated as inputs and lying in stock on that date must be reversed under Rule 11(2) of the Cenvat Credit Rules, 2004. Rule 16(1) of the Central Excise Rules, 2002 allows duty credit on goods returned for remaking, refining or re-conditioning, but that credit remains subject to reversal once the exemption option is exercised in respect of inputs in stock, in process, or contained in finished goods. Later clearances on payment of duty after crossing the exemption limit do not alter the reversal liability arising on the date of opting for exemption. Case-Laws Central Excise Fri, 13 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763256