https://www.taxtmi.com/caselaws?id=793016 Rule 11(3) of the CENVAT Credit Rules, 2004 does not cause lapse of accumulated credit where only some final products become exempt and other dutiable products continue to be manufactured from common inputs; the balance remains usable for duty payment on dutiable clearances, so the lapse demand was unsustainable. Rule 6(3) also does not permit a fixed percentage demand on exempted domestic clearances where separate accounts are maintained and no credit is taken on inputs used exclusively for exempt goods; that demand was therefore not recoverable. Goods exported under bond are excluded from rule 6(3) by rule 6(6)(v), so no percentage-based demand could be raised on such exports. The order dropping the proceedings was upheld in full. en-us Fri, 05 Jun 2026 00:00:00 +0530 Mon, 08 Jun 2026 08:52:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793016 Rule 11(3) of the CENVAT Credit Rules, 2004 does not cause lapse of accumulated credit where only some final products become exempt and other dutiable products continue to be manufactured from common inputs; the balance remains usable for duty payment on dutiable clearances, so the lapse demand was unsustainable. Rule 6(3) also does not permit a fixed percentage demand on exempted domestic clearances where separate accounts are maintained and no credit is taken on inputs used exclusively for exempt goods; that demand was therefore not recoverable. Goods exported under bond are excluded from rule 6(3) by rule 6(6)(v), so no percentage-based demand could be raised on such exports. The order dropping the proceedings was upheld in full. Case-Laws Central Excise Fri, 05 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793016