Blocked Input Tax Credit Requires Specific Exclusions, While Interest Applies Only to Credit Actually Utilised

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....Blocked input tax credit must be assessed against the specific statutory exclusion applicable to each supply; the blocked-credit provision cannot operate as a generic residuary ground. Claimants must prove eligibility, any exception, and invoice-to-asset and business-use nexus through contemporaneous records, while assets claimed as plant and machinery must meet the statutory definition. Credits for gifts, food and catering, and unsupported expenditure were disallowed. A lawfully leviable cess separately charged must be included in taxable value. Interest on inadmissible credit applies only where wrongly availed credit is utilised, from utilisation until reversal or payment. Penalty depends on the prescribed statutory conditions and is limited to tax legally sustained, subject to recomputation.....