Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 54 - AT - Central ExciseCENVAT credit - Goods become exempted after taking cenvat credit - Demand of 8% of the price of exempted goods under Rule 6(3) - Revenue contends that if any credit of duty paid on the inputs used in the manufacture of dutiable final product is taken and utilized then it cannot be got reversed or denied on the ground that such final product became exempted subsequently - Held that:- At the time of taking of the credit, the goods manufactured by the appellant were dutiable and, therefore, the appellant has rightly taken the credit. However, at the time of clearance of the goods, the goods were exempt and, therefore, the appellant reversed the credit attributable to the inputs contained in the exempted final products. This reversal done by the respondent is perfectly legal - law itself was amended retrospectively vide Finance Act, 2010 providing for reversal of the credit attributable to the inputs contained in the exempted final products - Following decision of Chandrapur Magnet Wires (P) Ltd. vs. Commissioner of Central Excise [1995 (12) TMI 72 - SUPREME COURT OF INDIA] - Decided against Revenue.
|