https://www.taxtmi.com/caselaws?id=117215 Where Cenvat credit is wrongly retained or utilised after opting for exemption, interest is recoverable under Rule 12 of the Cenvat Credit Rules, 2002 read with the recovery machinery under the Central Excise Act, because un-reversed credit attributable to stock and finished goods is treated as wrongly utilised. By contrast, penalty under Rule 13 applies only where the wrongful credit involves fraud, wilful statement, collusion or comparable suppression; absent such culpable conduct, penalty is not imposable. The stated effect is that interest may be demanded on the wrongly utilised credit, while penal relief remains available where the dispute is confined to subsequent utilisation after exemption without fraud or suppression. en-us Wed, 04 Jan 2006 00:00:00 +0530 Thu, 21 Jun 2012 11:01:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117215 Where Cenvat credit is wrongly retained or utilised after opting for exemption, interest is recoverable under Rule 12 of the Cenvat Credit Rules, 2002 read with the recovery machinery under the Central Excise Act, because un-reversed credit attributable to stock and finished goods is treated as wrongly utilised. By contrast, penalty under Rule 13 applies only where the wrongful credit involves fraud, wilful statement, collusion or comparable suppression; absent such culpable conduct, penalty is not imposable. The stated effect is that interest may be demanded on the wrongly utilised credit, while penal relief remains available where the dispute is confined to subsequent utilisation after exemption without fraud or suppression. Case-Laws Central Excise Wed, 04 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117215