Construction of the New plant is processed in our company, in that we are wrongly taken the credit against the TMT Bars, Flates and Plates of Rs. 4,59,234/- at the time of IA 2000 Audit commenced on February 2009 the Commissionarate auditors are advised to take reversed that the above said amount. We are do the same and now the range office will noticed that pay the interest for the Reversed amount.
Please explain in this reg. and give Notifications and any of the circulars in this mater. And please help me how to manage this problem.
22 September 2009
If the wrongly availed cenvat was utilised to pay tax, interest is payable.
Recently the CBEC has clarified that, interest is payable, even if the same was not utilised. Although, such a stand is not sustainable, the departmental officers have no option, but to charge interest.
CAclubindia
