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Cenvat credit

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This query is : Resolved

Uday Kumar (Querist)
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17 December 2011 in monthly return(E.R.3),it was wrongly shown that cenvat credit has been taken but as a matter of fact, neither the cenvat credit has been taken or utilised. and now a letter has been forwarded to us regarding "payment of interest on wrongly availment of CENVAT credit..."supported with a judgement of P&H High Court, in context of Ind-swift Labs v/s UOI.
pls. suggest the step immediately

PUNEET GOYAL

PUNEET GOYAL (Expert)
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17 December 2011 As per above fact it appears that u have availed wrong cenvat credit and utilized the same.

As per above judgement, the Court held that interest liability would arise only if the wrongly availed credit is utilized or credit is wrongly utilized.

Hoverer board has clarified that under present Rules, interest would have to be paid even if credit is availed. (Circular no 897/17/2009-CX dated 03.09.09).

Thus it appears that you have to pay interest in above case.

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