https://www.taxtmi.com/caselaws?id=800692 CENVAT credit on capital goods is disallowed only where they are exclusively used to manufacture exempt final products. Where a manufacturer produces both dutiable and exempt biscuits and no exclusive exempt use is established, credit on capital goods, inputs and input services remains available; the reversal demand is unsustainable. Recording credit availment and utilisation in RG-23C registers and ER-1 returns negates suppression of facts or wilful misstatement. The extended limitation period therefore cannot apply, leaving the associated interest and penalty unsustainable. en-us Thu, 08 Oct 2026 00:00:00 +0530 Sat, 10 Oct 2026 08:32:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800692 CENVAT credit on capital goods is disallowed only where they are exclusively used to manufacture exempt final products. Where a manufacturer produces both dutiable and exempt biscuits and no exclusive exempt use is established, credit on capital goods, inputs and input services remains available; the reversal demand is unsustainable. Recording credit availment and utilisation in RG-23C registers and ER-1 returns negates suppression of facts or wilful misstatement. The extended limitation period therefore cannot apply, leaving the associated interest and penalty unsustainable. Case-Laws Central Excise Thu, 08 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800692