INTEREST AND PENAL PROVISIONS - Under the Cenvat credit Rules, 2004: - Central Excise Practice Manual (OLD) - Central Excise

(iii) Under the Cenvat credit Rules, 2004: Rule 14 Availment of Cenvat credit wrongly or erroneous refund. Interest payable along with such credit amount and provisions of Section 11 A and Section 11AB applicable. Rule 15 Wrong availment of Cenvat credit or contravention of CCR in case of inputs and capital goods. Penalty of Rs.2000 or upto duty amount,whichever is greater and confiscation of goods. Penalty under Section 11AC is also payable, if credit availed is due to fraud, collusion, suppression etc with intent to evade duty payment. Rule 15 Wrong availment of Cenvat credit or contravention of CCR in case of inputs Penalty upto Rs.2000/- Penalty as per Section 78 of Finance Act, 1994 also payable,service if credit availed is due to fraud, with intent to evade tax payment. Rule 15A Contravention of CCR for which there is no specific Penalty Penalty upto Rs. 5000/-