Wrongly availed cenvat credit of input services

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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2016 wrongly availed cenvat credit of input services but not utilized of input credit services whether in audit service tax department deduct wrongly availment of cenvat credit .whether i have to pay interest and reversal of cenvat credit also.please reply this answer,

Rajannaidu

Rajannaidu (Expert)
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24 September 2016 Pursuant to Rule 14 of the Credit Rules 2004, if the Assessee has wrongly taken Cenvat credit but has not utilized the same, then interest is not leviable, however Assessee has to be reverse the Cenvat credit which was wrongly taken. However, in case of Cenvat credit wrongly taken and the same is utilized then such case Cenvat credit should be reversed along with interest.