Applicability of interest to CENVAT credit recovery - Availed ...

Service Tax

March 21, 2020

Applicability of interest to CENVAT credit recovery - Availed versus Taken and / or utilization of credit - Recovery of CENVAT credit wrongly taken or erroneously refunded - it is unusual for ‘utilization’ to be qualified with ‘ineligibility’ on its own as ‘utilization’ is solely for the purpose of discharge of tax/duty liability which, even if not warranted, does not, by any stretch of usage, behove description as ‘wrongly.’ Such a transferred epithet can only reasonably mean ‘utilization’ after having been wrongly taken and, thereby, made ineligible. - AT

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Applicability of interest to CENVAT credit recovery - Availed ...

Service Tax

March 21, 2020

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Denial of re-credit of Cenvat credit - if the appellant does not take any credit then no such mal-practice can happen and no credit can be accumulated. Moreover, it also...

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Cenvat Credit - impact of subsequent decision of apex court - Rule 14 of Cenvat Credit Rules, 2004 provided for recovery of irregularly availed Cenvat credit and it is...

Recovery of interest on the wrongly availed credit - The Tribunal upheld that interest under Rule 14 is liable on wrongly taken credit, irrespective of its utilization,...

Rejection of Refund claim - It is well settled principle that availment of Cenvat Credit, its utilisation and refund are different aspects dealt with under CCR, 2004....

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Demand of interest - whether interest is chargeable on the cenvat credit wrongly taken, though the same is reversed before utilization of the credit - Held No - AT

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