https://www.taxtmi.com/caselaws?id=30715 Interest under Section 11AB of the Central Excise Act, 1944 was held not recoverable on excess Cenvat credit taken on capital goods where the credit remained substantially unutilised. The tribunal treated interest as compensatory and linked to delayed payment of duty or actual enjoyment of revenue by the exchequer; mere wrong availment, without corresponding utilisation, did not create interest liability. Because the excess credit stayed only as a book entry in the proforma account and was used only to a minimal extent, Rule 12 of the Cenvat Credit Rules, 2002 did not support recovery of interest. The assessee therefore succeeded. en-us Fri, 23 May 2008 00:00:00 +0530 Thu, 18 Sep 2008 09:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30715 Interest under Section 11AB of the Central Excise Act, 1944 was held not recoverable on excess Cenvat credit taken on capital goods where the credit remained substantially unutilised. The tribunal treated interest as compensatory and linked to delayed payment of duty or actual enjoyment of revenue by the exchequer; mere wrong availment, without corresponding utilisation, did not create interest liability. Because the excess credit stayed only as a book entry in the proforma account and was used only to a minimal extent, Rule 12 of the Cenvat Credit Rules, 2002 did not support recovery of interest. The assessee therefore succeeded. Case-Laws Central Excise Fri, 23 May 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30715