Reversal of wrongly taken cenvat on cement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 I have taken cenvat of excise of cement as a capital goods in service tax but after 1 year I know that it is wrong.

My question is:
Whether i can simply reverse above cenvat by utilising other cenvat

or

It would have to be reverse by payment only ??

SANJAY TALATI

SANJAY TALATI (Expert)
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07 September 2010 You can rectify your mistake by reversal of Cenvat to the extent earlier taken by u and no need to pay through PLA. However, check up whether at any time the balance in cenvat gone below the amt of cedit wrongly taken.

In any case, u are required to pay the Interest @ 13% p.a. for the period from the date the credit is taken to the reversal. This Interest is necessarily to be paid through TR- 6 challan.