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Wrong availment of cenvat credit
we taken wrong cenvat credit in the month of July 2014 and make duty payment but now we noticed that this credit is wrong, and we make debit entry...
is it sufficient for settlement or we need to pay interest on credit amount????
the credit amount is approx Rs.40000/-
Replies (3)
Dear Mr.Dipesh,
You need to pay interest @ 24% per year for that wrong credit.
Regards
RP Ananthakumar
As per the amendment in Rule 14 of Cenvat Credit Rules, 2004 vide N/N-18/2012 w.e.f. 01-04-2012, the wrong credit along with interest is recoverable only if the credit has been taken AND utilized wrongly. So, if the wrong credit has been availed but not utilized, no need to pay interest.
RP Sir Please confirm the answer for the Manoj sir post.
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