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2011 (3) TMI 67 - HC - Central ExciseCenvat Credit – As per the Punjab and Haryana High Court in the case of CCE v. HMT (TD) Ltd. at paragraph 17 have held that when the input-credit legally taken and utilised on the dutiable final products, need not be reversed on the final product becoming exempt 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 entitled to avail the Cenvat credit on such inputs - But the Cenvat credit availed on such inputs till the date of exemption, they vest in the assessee and the assessee cannot be divested of that credit as the law does not provide for the same – Hence, the authorities taking advantage of the Notification exempting the final product cannot claim reversal of Cenvat credit either in respect of final product which have come into existence on the date of the Notification or on the inputs stored in the godown or the work-in-progress and finished products – Thus appeal is in favour of the assessee and against the revenue
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