https://www.taxtmi.com/caselaws?id=784564 Penalty under s 11AC read with r 15 of the CENVAT Credit Rules, 2004 was in issue where CENVAT credit had been taken on inputs/input services later attributable to manufacture of non-excisable goods and to trading. In the absence of any SCN allegation that the credits were barred under r 3 or that the inputs were, ab initio, exclusively meant for non-excisable goods, the only possible breach was retention after such deployment. Since r 6 permits retention upon reversal, and payment of the prescribed percentage of value of exempted goods sufficed under r 6(3), invocation of r 15(2) (and consequential s 11AC) was held untenable; the revenue appeal was dismissed. en-us Fri, 26 Dec 2025 00:00:00 +0530 Thu, 08 Jan 2026 08:19:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784564 Penalty under s 11AC read with r 15 of the CENVAT Credit Rules, 2004 was in issue where CENVAT credit had been taken on inputs/input services later attributable to manufacture of non-excisable goods and to trading. In the absence of any SCN allegation that the credits were barred under r 3 or that the inputs were, ab initio, exclusively meant for non-excisable goods, the only possible breach was retention after such deployment. Since r 6 permits retention upon reversal, and payment of the prescribed percentage of value of exempted goods sufficed under r 6(3), invocation of r 15(2) (and consequential s 11AC) was held untenable; the revenue appeal was dismissed. Case-Laws Central Excise Fri, 26 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784564