Recovery of CENVAT Credit and Interest for Capital goods u/r 3(5B) invoking Rule 14 not allowable for Period before March 2013: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that the recovery of CENVAT credit and interest for capital goods under Rule 3(5B) of the CENVAT Credit Rules, 2004, invoking Rule 14, is not allowable for the period before March 2013. The tribunal set aside the excise order, emphasizing that the provisions for recovery of CENVAT credit and interest cannot be applied retrospectively. This ruling provides clarity on the applicability of CENVAT credit recovery rules and protects taxpayers from retrospective tax demands.