CENVAT Credit Dispute: Tribunal Rules Interest Contingent on Actual Credit Utilization Before 2015 Amendment

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....CESTAT adjudicated a dispute regarding CENVAT credit interest liability. The tribunal determined that interest for irregularly taken credit is contingent upon actual utilization. Prior to 1.3.2015, judicial precedent established that unutilized credit does not attract interest. The court found the appellant's carried forward CENVAT credit balance exceeded the reversed amount, rendering no interest payable. The tribunal set aside the original order and associated penalties, clarifying that mere wrongful availment followed by prompt reversal does not automatically trigger interest or penalties absent fraudulent intent. The legislative amendment effective 1.3.2015 further reinforced this interpretation, emphasizing procedural fairness in tax credit mechanisms.....