https://www.taxtmi.com/caselaws?id=1613 Where an exemption is conditional on non-availment of input credit, an assessee who opts for the exemption must first neutralise any credit already taken on inputs or capital goods. If the assessee continues clearances and later works out the reversal, interest is compensatory for delay only on the cash amount that ought to have been paid when the exemption was chosen. The credit merely reversed from the existing balance does not attract interest because it is not a delayed cash payment, even if the exact figures are settled later. Accordingly, interest is confined to the belated cash component and not to the reversed credit balance. en-us Thu, 31 May 2007 00:00:00 +0530 Tue, 15 Apr 2008 07:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1613 Where an exemption is conditional on non-availment of input credit, an assessee who opts for the exemption must first neutralise any credit already taken on inputs or capital goods. If the assessee continues clearances and later works out the reversal, interest is compensatory for delay only on the cash amount that ought to have been paid when the exemption was chosen. The credit merely reversed from the existing balance does not attract interest because it is not a delayed cash payment, even if the exact figures are settled later. Accordingly, interest is confined to the belated cash component and not to the reversed credit balance. Case-Laws Central Excise Thu, 31 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1613