https://www.taxtmi.com/caselaws?id=155078 Interest under the Cenvat Credit recovery provisions was not chargeable where capital goods were received in the factory and credit was validly taken on receipt, even though the credit was later reversed after shortage was detected. Rule 12 of the Cenvat Credit Rules, 2002 applies only when credit has been taken or utilised wrongly, and the Revenue did not establish any wrongful availment or non-receipt of goods. The same reasoning applied to Rule 14 of the Cenvat Credit Rules, 2004, which follows an identical scheme, and Section 11AB of the Central Excise Act could not sustain an interest demand once the recovery provisions were inapplicable. The interest demand was therefore unsustainable. en-us Fri, 16 Oct 2009 00:00:00 +0530 Sat, 31 Aug 2013 12:09:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155078 Interest under the Cenvat Credit recovery provisions was not chargeable where capital goods were received in the factory and credit was validly taken on receipt, even though the credit was later reversed after shortage was detected. Rule 12 of the Cenvat Credit Rules, 2002 applies only when credit has been taken or utilised wrongly, and the Revenue did not establish any wrongful availment or non-receipt of goods. The same reasoning applied to Rule 14 of the Cenvat Credit Rules, 2004, which follows an identical scheme, and Section 11AB of the Central Excise Act could not sustain an interest demand once the recovery provisions were inapplicable. The interest demand was therefore unsustainable. Case-Laws Central Excise Fri, 16 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155078