If the co. has taken Cenvat credit on Capital goods in 2007 ( through RG 23C) and subsequently, in 2011, excise authorities rejected the claim for the credit of the same. Hence,the credit had to be reversed in RG-23C in 2011.
The client ,working in SAP environment, had not capitalised. the amount equal to excise duty in 2007. What should be the accounting treatment now, on rejection of the claim? Can it be capitalised with retrospective effect?