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Reversal of wrongly taken cenvat on cement

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 I have taken cenvat of excise of cement as a capital goods in service tax but after 1 year I know that it is wrong.

My question is:
Whether i can simply reverse above cenvat by utilising other cenvat

or

It would have to be reverse by payment only ??

SANJAY TALATI

SANJAY TALATI (Expert)

07 September 2010 You can rectify your mistake by reversal of Cenvat to the extent earlier taken by u and no need to pay through PLA. However, check up whether at any time the balance in cenvat gone below the amt of cedit wrongly taken.

In any case, u are required to pay the Interest @ 13% p.a. for the period from the date the credit is taken to the reversal. This Interest is necessarily to be paid through TR- 6 challan.

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