EXCESS CENVAT CREDIT ON CAPITAL GOODS TAKEN

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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?

Ashok Asthana

Ashok Asthana (Expert)
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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.

S.P.Mahanta

S.P.Mahanta (Expert)
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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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