modvat reversed due to non present of invoice

1432 views 4 replies

central excise audit has been conducted in my one of my clients's establishment.audit party has reverses modvat on one invoice  due to non availability of modvat copy of invoice. And interest has been paid for credit utilized period(date of credit and date of modvat reversed) through PLA. What will be treatment of interest & modvat reverse in er-1 of e-file forms. Interest is falls under which section?  

Replies (4)

search for "transporter's copy" at your end and produce to the same to audit office immediately, as they will forward the case to range officer to issue show cause. 

without transporter's copy of invoice, modvat taken is improper. 

now we have traced the transporter copy and we have claimed modvat in this month. auditor has reversed the modvat in month of audit he says that we can take cenvat credit on trace of bill. but interest is payable from date of modvat credit to date of modvat reversed. what will be treatment in er-1.

Originally posted by : abhishek


now we have traced the transporter copy and we have claimed modvat in this month. auditor has reversed the modvat in month of audit he says that we can take cenvat credit on trace of bill. but interest is payable from date of modvat credit to date of modvat reversed. what will be treatment in er-1.

1. auditors has no right to reverse the credit, its the part of R/O to issue show cause and on hearing to reverse the duty and impose interest. 

2. Please be sure about written compliances (if any) that u have given to audit team regarding the non availibility of duplicate copy of invoice and willingly reversed the amount on self declaration.

3. as u have reversed ( actually paid)  the duty from PLA, for which u have taken credit in RG23A part 2 , you cant take double credit on said invoice. 

 

you have to approach the audit team with copy to your juridictional AC/DC for to restore the forceful reversal of said duty from PLA ( its wrong entry) and pray to restore the PLA balances prior to the reversal. 

don't modify the ER1 as per audit team instructions, this power belong to your R/O only, and any discripency / abnormality can be viewed and adjudicated by R/O only. 

thanks sir..

you have very deep knowledge of excise...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details