X ltd has obtained a cenvat credit of 55,000 by fraud. This is deducted by Central excise officer on March 13,2010. A show cause notice is issued to X ltd on March 15,2010. The Central Excise Officer (after considering representation by X) determines the quantum of tax payable on may 16, 2010 as follows:
Tax payable (Cenvat fraud) 55,000
Interest 7,200
Penalty 1,10,000
Amt payable =1,72,200.
My doubt is how to arrive at Interest amount? I tried but not getting that amount. Please help. Thanks in advance.
This is from reference material and I am a student.
CAclubindia
