https://www.taxtmi.com/caselaws?id=211007 Karnataka HC ruled in favor of assessee who wrongly availed Cenvat credit on capital goods but immediately reversed the entry upon discovering the mistake before utilizing the credit. The court held that once the entry was reversed, it was as if the Cenvat credit was never available. Interest liability under Section 11AB arises only when duty is not paid on due date, but without duty liability, no interest obligation exists. Since assessee did not benefit from the wrong entry and reversed it promptly, no interest or penalty was payable. Tribunal's order was upheld against Revenue. en-us Tue, 05 Apr 2011 00:00:00 +0530 Fri, 30 May 2025 09:25:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211007 Karnataka HC ruled in favor of assessee who wrongly availed Cenvat credit on capital goods but immediately reversed the entry upon discovering the mistake before utilizing the credit. The court held that once the entry was reversed, it was as if the Cenvat credit was never available. Interest liability under Section 11AB arises only when duty is not paid on due date, but without duty liability, no interest obligation exists. Since assessee did not benefit from the wrong entry and reversed it promptly, no interest or penalty was payable. Tribunal's order was upheld against Revenue. Case-Laws Central Excise Tue, 05 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211007