https://www.taxtmi.com/caselaws?id=54326 Cenvat credit is not admissible on inputs used for exempt final products once exemption operates, including inputs in stock, inputs consumed in work-in-process, and inputs contained in finished goods awaiting clearance. The Tribunal applied the settled position that credit cannot be retained on such inputs after the final product becomes exempt, and sustained denial of credit in favour of the Revenue. It also recognised that deliberate wrongful availment of ineligible credit attracts penalty; prior payment before the show cause notice may affect only the quantum, not the existence of penal liability. A reduced penalty was therefore sustained against the assessee. en-us Wed, 30 Mar 2005 00:00:00 +0530 Tue, 19 Oct 2010 13:42:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54326 Cenvat credit is not admissible on inputs used for exempt final products once exemption operates, including inputs in stock, inputs consumed in work-in-process, and inputs contained in finished goods awaiting clearance. The Tribunal applied the settled position that credit cannot be retained on such inputs after the final product becomes exempt, and sustained denial of credit in favour of the Revenue. It also recognised that deliberate wrongful availment of ineligible credit attracts penalty; prior payment before the show cause notice may affect only the quantum, not the existence of penal liability. A reduced penalty was therefore sustained against the assessee. Case-Laws Central Excise Wed, 30 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54326