excess credit taken in capital goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 Dear Sir,

I had wrongly taken 100% cenvat credit on capital goods in past F.Y.2010-2011 can anyone tell me how much penalty will be imposed?

Neetu.

S.P.Mahanta

S.P.Mahanta (Expert)
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07 July 2011 wef 1st Apl'10, SSI units entitled to avail 100% Cenvat Credit on Capital goods in year of receipt.
Capital goods on which no cenvat credit availed in ist year due to indvertence, 100% cenvat credit credit can be availed in subsequent yr.

If availment is covered under any of two instances stated above, no reversal / interest / penalty applicable.
In any other case, 50% reversal of excess credit availment, interest & penalty applicable