2016 (9) TMI 1406 - AT - Central Excise

CENVAT credit - taxable product subsequently becoming exempt - Held that - indefesible right to Cenvat credit cannot be denied or forgone unless otherwise required by law for extinguishment of such right. Abridgment of the vested right was recognised by law w.e.f. 1.3.2007 incorporating sub-rule 3 (2) to Rule 11 of CCR 2004. Present case being prior to such introduction of law, the order denying Cenvat credit is set aside - appeal allowed.

Summary

The judgment by Appellate Tribunal CESTAT CHENNAI in 2016 (9) TMI 1406 states that the appellant's right to Cenvat credit cannot be denied when final products became exempt from excise duty. The order denying Cenvat credit is set aside as the law recognizing abridgment of vested rights was introduced after the case. Appeal is allowed.