As far as my knowledge of Cenvat Credit Rules is concerned.... Interest is payable either on short taxes levied or not levied at all. Moreover, you have only availed the credit and not utilised the same. So, in my humble opinion, there is no need to pay any kind of interest
You have inturn taken less cenvat credit.
Had you taken cenvat credit treating it as input goods, you were entitled to 100% cenvat credit, but since you considered it as cenvat credit on capital good, you could claim only 50%.
So I don't think you would be liable to any interest.
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But if you have claimed cenvat credit but were not eligible for, then you have to pay interest. As far as my knowledge goes there is a recent circular, that even if you dont utilise the cenvat credit after claiming it by mistake, it would tantamount to utilisation and hence you may be liable to interest.
Please correct if i am wrong!
Yes Sumit...as per recent circular...Interest is chargeable from the date of wrogly availed till it is rectified...
See circular No. 942/03/2011
No interest is liable in your case ... you can avail the remaining 50% cenvat in next credit utilisation
Dear Hari Hara KS,
| Originally posted by : Rachit Gupta | ||
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Yes Sumit...as per recent circular...Interest is chargeable from the date of wrogly availed till it is rectified... See circular No. 942/03/2011 |
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openion, because rules are amended, Cenvat Credit wrongly availed means interest payable from the date of CC taken, date of rectified entry/reversal entry date with @ 18% interest.
Dear Hari
A dealer is not liable to avail the cenvat credit . He can just pass on the cenvat credit in proportionate to qty removed. Only a manufacturer can calim the cenvat credit and can set off this into his liability of excise duty.
Please clear the concept in case of dealer & manufacturer registration.
Regards
HS Negi
CAclubindia
