https://www.taxtmi.com/caselaws?id=52755 Reversal of the full Modvat credit attributable to inputs used in exempted goods was treated as non-availment of credit, so a duty demand under Rule 57CC on that basis could not stand. The reasoning was that once the credit is reversed, the assessee cannot be said to have taken credit on those inputs, and recovery is confined to credit wrongly taken rather than a demand linked to exempted clearances. The Board's circular was also read consistently with that scheme. The demand and penalty were therefore held unsustainable, and the Revenue's challenge failed. en-us Mon, 08 Mar 2004 00:00:00 +0530 Sat, 22 Jun 2024 11:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52755 Reversal of the full Modvat credit attributable to inputs used in exempted goods was treated as non-availment of credit, so a duty demand under Rule 57CC on that basis could not stand. The reasoning was that once the credit is reversed, the assessee cannot be said to have taken credit on those inputs, and recovery is confined to credit wrongly taken rather than a demand linked to exempted clearances. The Board's circular was also read consistently with that scheme. The demand and penalty were therefore held unsustainable, and the Revenue's challenge failed. Case-Laws Central Excise Mon, 08 Mar 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52755