2011 (4) TMI 1123

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.... Advocate, for the Respondent. [Judgment per : N. Kumar, J.]. - This appeal is preferred against the order passed by the Tribunal which held that the assessee is not liable to reverse the cenvat credit in respect of the inputs which were purchased prior to 1-8-2004, the day from which an exemption was granted, from payment of excise duty in respect of final products. 2. The assessee ....

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....e assessee preferred an appeal to the Tribunal. The Tribunal held that in respect of semi-finished products and raw materials held in stock prior to 1-8-2004, the assessee is entitled to the benefit of cenvat credit and is not under any obligation to reverse the credit. Aggrieved by the said order, the revenue is in appeal. 3. This appeal was admitted to consider the following substantial ....

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....ar.)] after referring to the various judgments held that once the input credit is legally taken and utilized on the duitable final product, it need not be reversed on the final product being exempted subsequently. Only if any products are purchased subsequent to the said exemption and if any tax is paid on such inputs, as the final product is exempted from payment of tax, the assessee would not be....

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....n No. 10/2007 with effect from 1-3-2007, which reads as under :- "(3) A manufacturer or producer of a final product shall be required to pay an amount equivalent to the CENVAT credit, if any, taken by him in respect of inputs received for use in the manufacture of the said final product and is lying in stock or in process or is contained in the final product lying in stock, if, - (i)&nb....