Cenvat credit wrongly taken

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2013 abc @ co. took cenvat credit amounting to rs 2 lakh on inputs wrongly included in their RG 23A register in te month of february 2012. during audit, the internal audit party pointed out the mistake in august, 2012. abc & co immediately reversed the amount from balance 15 lakh in their cenvat credit account lying since february 2012.

whether the company is liable to pay interest on the amount of cenvat credit wrongly taken??? and if liable then at what percentage ???

Arun Kumar Singh

Arun Kumar Singh (Expert)
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18 January 2013 If the Cenvat credit has been taken and utilised wrongly the same shall be payable along with interest. If cenvat credit wrongly taken is reversed before utilisation, interest is not payable.