https://www.taxtmi.com/caselaws?id=122776 Interest under Rule 12 of the Cenvat Credit Rules, 2002 read with Section 11AB of the Central Excise Act, 1944 is attracted only where wrongly taken credit is actually utilised or otherwise causes deprivation of revenue. Section 11AB is compensatory in nature and applies to short payment, non-payment, or erroneous refund of duty, while Rule 12 extends recovery provisions to wrongly taken or wrongly utilised credit. On the stated facts, the excess credit was taken by mistake, never used for duty payment, and was reversed when pointed out; accordingly, the statutory basis for charging interest was absent and the interest demand was unsustainable. en-us Wed, 29 Aug 2007 00:00:00 +0530 Fri, 17 Aug 2012 11:39:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122776 Interest under Rule 12 of the Cenvat Credit Rules, 2002 read with Section 11AB of the Central Excise Act, 1944 is attracted only where wrongly taken credit is actually utilised or otherwise causes deprivation of revenue. Section 11AB is compensatory in nature and applies to short payment, non-payment, or erroneous refund of duty, while Rule 12 extends recovery provisions to wrongly taken or wrongly utilised credit. On the stated facts, the excess credit was taken by mistake, never used for duty payment, and was reversed when pointed out; accordingly, the statutory basis for charging interest was absent and the interest demand was unsustainable. Case-Laws Central Excise Wed, 29 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122776