Extra avail in return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 Respected Senior,
I am facing a problem actually in the February and January 2010 i have wrongly availed in capital 100% instead of 50% but when i realized that i m taking wrong availed i had returned it in February 2010 in this period of one year there is enough balance for adjust to cenvat liabilities, My question is that is there any penalty or interest for this type of error because the excise office are pressure on us for interest on this 50% excess amount, I hope u will understand my problem because my job is depend on it my boss clearly said if interest on then he fired me from my job, I hope u will understand my problem and clear the query on urgent basis.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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12 February 2013 Penalty can't be imposed. If you have wrongly availed and without utilization of cenvat credit you have to reverse the same, interest can't be imposed.

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2013 Thanks Arun Ji But can u give any reference eg notification or circular regarding this. again thanks for your valuable reply

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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13 February 2013 No penalty if credit wrongly taken reversed with interest before SCN- ETA General P Ltd. vs. CCE (2008)222 ELT 443.