https://www.taxtmi.com/caselaws?id=345685 The appellants wrongly availed Cenvat Credit on imported capital goods not used in manufacturing, amounting to around Rs. 32 lakhs. They debited the credit upon objection, paid back the amount with interest, and contested the penalty equivalent to duty. Despite prompt reversal and repayment, the penalty imposition was upheld due to the credit misuse, lack of awareness of Excise laws, and insufficiency of interest payment as a penalty substitute. The appeal was rejected, affirming the penalty imposition under the Finance Act, 1994's proviso to section 78. en-us Tue, 09 May 2017 00:00:00 +0530 Tue, 25 Jul 2017 07:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=345685 The appellants wrongly availed Cenvat Credit on imported capital goods not used in manufacturing, amounting to around Rs. 32 lakhs. They debited the credit upon objection, paid back the amount with interest, and contested the penalty equivalent to duty. Despite prompt reversal and repayment, the penalty imposition was upheld due to the credit misuse, lack of awareness of Excise laws, and insufficiency of interest payment as a penalty substitute. The appeal was rejected, affirming the penalty imposition under the Finance Act, 1994's proviso to section 78. Case-Laws Service Tax Tue, 09 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=345685