Reversal of CENVAT Credit: Absolute Exemption Leads to Lapse, Partial Exemption Requires Reversal of Specific Input Credits.

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....Reversal of CENVAT credit - New exemption from duty - As per the provision of section 11, only in a case where the exemption which is opted for, if it is absolute exemption, the remaining amount of cenvat credit after reversal as per clause (i) shall lapse, whereas if the exemption is not absolute only requirement is to reverse the credit attributed to input as such, input in process and input contained in the finished goods lying on the date of opting of exemption notification. - AT....