100% Credit availed in ER-1 of Capital Goods, Central Excise

[Prashant patra]

Dear Sir

We have wrongly taken & shown the 100% capital goods credit in ER-1 return for the month of june-2012

Kindly suggest whether we need to pay interest & how much is it.

Thanks

Prashant

Posts / Replies

[JAMES PG]

You have to reverse the credit of 50% and pay interest @18% from the date of taking credit till date of reversal

[Pradeep Khatri]

No need to pay the interest if you had availed the CENVAT credit but not utilised.  This aspect has been clarified in the Budget 2012.