https://www.taxtmi.com/caselaws?id=763872 Gujarat HC held that manufacturers have the option to either avail exemption on final products or pay duty and claim Modvat/Cenvat credit on inputs. The court ruled that Section 5A(1A) amendment by Finance Act 2005 is substantive and prospective, not clarificatory. Where assessee paid duty on exempted final products and utilized input credit, the revenue demand for Cenvat credit was unjustified. The tribunal erred in upholding the demand since appellant legitimately exercised the option to pay duty instead of claiming exemption. Appeal allowed. 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 Gujarat HC held that manufacturers have the option to either avail exemption on final products or pay duty and claim Modvat/Cenvat credit on inputs. The court ruled that Section 5A(1A) amendment by Finance Act 2005 is substantive and prospective, not clarificatory. Where assessee paid duty on exempted final products and utilized input credit, the revenue demand for Cenvat credit was unjustified. The tribunal erred in upholding the demand since appellant legitimately exercised the option to pay duty instead of claiming exemption. Appeal allowed. Case-Laws Central Excise Thu, 21 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763872