https://www.taxtmi.com/caselaws?id=763872 An assessee could opt to pay duty on goods covered by an absolute exemption and still claim Modvat/Cenvat credit on inputs, because Section 5A of the Central Excise Act, 1944 did not, before insertion of sub-section (1A), prohibit that course. The court treated the levy-credit chain as revenue neutral and held that denial of credit after payment of duty was unsustainable. It further held that insertion of Section 5A(1A), though introduced in language suggesting removal of doubts, materially altered the legal position by prohibiting duty payment on absolutely exempt goods, and was therefore substantive and prospective, not clarificatory or retrospective. en-us Thu, 21 Nov 2024 00:00:00 +0530 Mon, 30 Dec 2024 17:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763872 An assessee could opt to pay duty on goods covered by an absolute exemption and still claim Modvat/Cenvat credit on inputs, because Section 5A of the Central Excise Act, 1944 did not, before insertion of sub-section (1A), prohibit that course. The court treated the levy-credit chain as revenue neutral and held that denial of credit after payment of duty was unsustainable. It further held that insertion of Section 5A(1A), though introduced in language suggesting removal of doubts, materially altered the legal position by prohibiting duty payment on absolutely exempt goods, and was therefore substantive and prospective, not clarificatory or retrospective. Case-Laws Central Excise Thu, 21 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763872