Wrongly availed CENVAT credit attracts interest even without utilisation under Rule 14.

Interest is payable on wrongly availed CENVAT credit even where the credit was not utilised. The text applies the principle under Rule 14 of the CENVAT Credit Rules that wrongful availment itself triggers interest liability, and it rejects the argument that non-utilisation avoids that consequence. The discussion concerns credit taken on capital goods sent for re-conditioning or modification and not received back within the prescribed time, with the demand for interest upheld and the appeal rejected.

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Issues: Whether interest is payable on wrongly availed CENVAT credit even if the credit was not utilised.

Analysis: The appeal concerned demand of interest on credit taken in respect of capital goods sent for re-conditioning or modification and not received back within the prescribed time. The earlier Supreme Court ruling relied upon held that where credit is wrongly taken, liability to pay interest arises under Rule 14 of the CENVAT Credit Rules. The contention that the credit had not been utilised did not find acceptance in light of that ruling.

Conclusion: Interest was held payable on the wrongly availed credit notwithstanding non-utilisation, and the appeal was rejected.

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