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TMI BlogInterest calculation for cenvat reversalX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir'sGreetings of the day...Kindly guide me for following problem. In excise audit officers found we wrongly take cenvat credit on capital goods. They give notice to reversal the cenvat amount along with interest. My doubt is..Invoice date is 05.03.2014 and we accounted in 15.03.14 and take cenvat credit in march and paid excise in April 5th. (march amount paid in april)Can i calculate in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest for accounted date to till date (i.e 15.03.14) or utilized date (i.e 05.04.2014) to till date?Kindly guide me.RegardsM.RamKumar 99498 40959 - Reply By MARIAPPAN GOVINDARAJAN - The Reply = It is better to pay interest from 15.03.2014 to the date of reversal/payment of duty. - Reply By vaibhav sharma - The Reply = In respect of my best knowledge the interest should be calculated from the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual invoice date to the date of payment of duty - Reply By Rajagopalan Ranganathan - The Reply = Sir, In respect of cenvat credit wrongly taken and utilized, interest is payable from the date of taking credit till date of repayment of the wrongly taken credit. In addition since you have utilized the wrongly taken credit for discharging duty on the final product such final product wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be treated as non-duty paid and the same is liable for confiscation and penalty may be imposed on you. You are fortunate that the Department has issued show cause notice only for reversal of cenvat amount along with interest. In this connection you may refer to rule 15 of Cenvat Credit Rules, 2004. - Reply By Naveed S - The Reply = Yes sir, very well answered above. Further, Penalty may als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be imposed by the department.. - Reply By Pradeep Khatri - The Reply = Dear Mathurthi, If, there is sufficient balance in your CENVAT credit Account, then, there is no need to pay the interest at all. Interest is payable when CENVAT credit availed and Utilized (wrongly). Before paying interest, please do also check this aspect. Regards Sameer Malhotra ,- Consultant YAGAY and S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UN Management, Business and Indirect Tax Consultants - Reply By Naveed S - The Reply = Sir, The fact that notice issued by the department for payment of interest itself is sufficient to consider the view that balance of cenvat pertaining to wrong availment was not available with the assessee in his capital goods cenvat credit account, at the time of audit and detection of audit para. - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By MUKUND THAKKAR - The Reply = Rajagopalan Ranganathan I appreciate your answer.. - Interest calculation for cenvat reversal - Query Started By: - Mathurthi RamKumar Dated:- 31-1-2015 Central Excise - Got 7 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... india.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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