https://www.taxtmi.com/caselaws?id=362240 Under Rule 14 of the Cenvat Credit Rules, 2004, interest was held not recoverable where wrongly availed credit had been reversed before utilisation, because the condition of wrongful taking and utilisation was not satisfied. The demand of interest was set aside. Penalty was sustained, however, because the record showed fraudulent availment of credit on invoices without receipt of goods, and the admitted arrangement supported penal consequences despite reversal of the credit. The legal position stated is that reversal before utilisation may defeat interest liability, but does not protect an assessee from penalty where the availment itself was fraudulent. en-us Wed, 16 May 2018 00:00:00 +0530 Fri, 22 Jun 2018 06:55:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=362240 Under Rule 14 of the Cenvat Credit Rules, 2004, interest was held not recoverable where wrongly availed credit had been reversed before utilisation, because the condition of wrongful taking and utilisation was not satisfied. The demand of interest was set aside. Penalty was sustained, however, because the record showed fraudulent availment of credit on invoices without receipt of goods, and the admitted arrangement supported penal consequences despite reversal of the credit. The legal position stated is that reversal before utilisation may defeat interest liability, but does not protect an assessee from penalty where the availment itself was fraudulent. Case-Laws Central Excise Wed, 16 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=362240