https://www.taxtmi.com/caselaws?id=785983 Cenvat credit rules require reversal equal to 5% of the value of exempted goods where input service credits are used for exempted clearances; the tribunal examined whether the 5% amount was reversed and found the respondent had paid and appropriated Rs.55,70,146. Revenue produced no evidence to the contrary, so the tribunal held the punitive interest and penalty equal to the amount paid were unsustainable and set them aside. The decision turns on reversal/apportionment of input service credit for exempted goods and proof of non-reversal. en-us Fri, 30 Jan 2026 00:00:00 +0530 Wed, 04 Feb 2026 08:24:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785983 Cenvat credit rules require reversal equal to 5% of the value of exempted goods where input service credits are used for exempted clearances; the tribunal examined whether the 5% amount was reversed and found the respondent had paid and appropriated Rs.55,70,146. Revenue produced no evidence to the contrary, so the tribunal held the punitive interest and penalty equal to the amount paid were unsustainable and set them aside. The decision turns on reversal/apportionment of input service credit for exempted goods and proof of non-reversal. Case-Laws Central Excise Fri, 30 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785983