2009 (5) TMI 957 - AT - Central Excise

Whether the input credit taken, when the final product was dutiable need not to be reversed on final product becoming exempt from the payment of duty? Held that After referring to the decision of the Apex Court in Collector vs. Dai Ichi Karkaria Ltd., 1999 (8) TMI 920 - SUPREME COURT OF INDIA the larger Bench ruled thatwhen the input credit legally taken and utilized on the dutiable final product need not to be reversed on the final product becoming exempt subsequently w.e.f. 9.7.2004. Undisputedly, the facts of the case in hand clearly attracts the said ruling and therefore do not warrant detailed discussion and analysis of the materials - appeal dismissed - decided against Revenue.

Summary

The appeal involved whether input credit taken on a dutiable final product should be reversed when the final product becomes exempt from duty. The issue was referred to a larger Bench, which ruled that the input credit need not be reversed in such cases. The appeal was dismissed based on this ruling.