Credit for central excise duty

This query is : Resolved

shibin joseph (Querist)
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17 July 2014 sir i have a doubt, as one of our friend's company had a production unit, and this unit had wrongly taken an input tax credit on central excise duty for the year 2009-10. and from the audit of excise department, they noticed that wrong credit and they charged Rs. 15000/- as interest, penalty and the wrong credit. as the order from the department the accountant had reversed the credit amount with interest and penalty from the credit available. but the department made a clarification that interest and penalty to be paid in the form of cash. and as the above said order we paid the interest and penalty in the form of cash. But we want to utilise the amount reversed for the interest and penalty wrongly utilised from the available credit.so how to shown that amount of wrong reversal for interest and penalty in ER-1 thank you..

Arun Kumar Singh

Arun Kumar Singh (Expert)
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18 July 2014 If you have avail the cenvat credit by mistake but not utilized then interest and penalty can not be imposed. Interest and penalty will be paid from only PLA account and it will be show in the return. you should consult with any professional.