https://www.taxtmi.com/caselaws?id=445576 CESTAT Chennai held that interest cannot be demanded on irregular CENVAT credit that was availed but not utilized. The appellant had reversed wrongly taken credit before utilizing it for duty payment and prior to show cause notice issuance. The tribunal found no intent to evade tax as credit was never used, accounts were regularly audited, and returns filed periodically. Extended period invocation was unjustified since credit reversal occurred before departmental action. Demand for ineligible credit was upheld but interest demand and penalty were set aside. Appeal allowed partially. en-us Thu, 09 Nov 2023 00:00:00 +0530 Sat, 11 Nov 2023 08:17:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445576 CESTAT Chennai held that interest cannot be demanded on irregular CENVAT credit that was availed but not utilized. The appellant had reversed wrongly taken credit before utilizing it for duty payment and prior to show cause notice issuance. The tribunal found no intent to evade tax as credit was never used, accounts were regularly audited, and returns filed periodically. Extended period invocation was unjustified since credit reversal occurred before departmental action. Demand for ineligible credit was upheld but interest demand and penalty were set aside. Appeal allowed partially. Case-Laws Central Excise Thu, 09 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445576