Doubt in cenvat credit service tax

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.

Replies (3)

interest will be chargeable from the date when assessee claim cenvat credit through PLA from his excise/service tax liability.

Dear Karthik,

Interest is calculating "Date of Cenvat Credit taken, Interest paid date * @ 18/- PA".

Dear sir,

Interest shall be calculated from the date of Utilization of such wrongly availed credit till the date of payment of amount equal to such credit utilized.

Interest rate would be 18% p.a (Refer 14/2011 Service Tax )

Regards

Venkat

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