er-1 related, Central Excise

[Anil Jangid]

One of our clients has availed excessive cenvat credit in the previous month. Since it cannot be revised we had to submit a letter to the range officer giving him the correct calculation to rectify the error. Now, we haven't received any confirmation from the range officer w.r.t this matter. Now my question is, for the this month's return, should I consider the incorrect closing balance as the opening balance - or should I take the opening balance as the one submitted to range officer. Answers with some would be really appreciated.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

If you are able to assess the correct excess amount you may reverse the excess credit and carry over the correct balance.If you could not ascertain the correct closing balance you may carry over the incorrect balance.

[Mahir S]

Anil ji,

Once letter is issued to the department for rectification, then the rectified figures should be taken in the new return.

Further, range officers are not bound to provide you with necessary confirmation w.r.t. to your letter for rectification. They have other more important work to attend in the office. Firstly, you make mistakes and secondly, you also expect department to communicate with you for such mistakes not related to the department.

However , Simultaneously , you may if required, ( though not compulsory), again intimate the department that the rectified figures have been incorporated in the new return.