Demand of 6% of CENVAT Credit not sustainable when Credit already paid with interest: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that the demand for 6% of CENVAT credit is not sustainable if the taxpayer has already paid the credit along with interest. The tribunal found that imposing an additional 6% penalty would amount to double recovery, which is not permissible under the law. This decision provides relief to businesses by clarifying that once the required payment with interest is made, no further penalties should be levied for the same issue.