14 June 2011
IN 2010-2011 I HAVE WRONGLY TAKEN 100% CREDIT ON CAPITAL GOODS WHICH SHOULD NOT BE TAKEN AND AS PER RULES ONLY 50% CREDIT CAN BE AVAILED ON CAPITAL GOODS IN ONE F.Y. AND REMAINING 50% WILL BE ALLOWED IN NEXT SUBSEQUENT YEAR.SO PLEASE TELL ME WHAT CAN I DO NOW AND WHAT WILL BE THE CONSEQUENCES?
20 June 2011
Reverse the 50% credit in your books. You may be liable to pay interest from the date of taking credit till the date of reversal on the amount reversed.
13 July 2011
Sec 11AB of Central Excise Rules 1944, Interest @13% is payable on excess cenvat credit availed from dt: of availment till dt: of payment have to be paid. Decision supported by Honble'Apex Court.
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