Excess Availment of CENVAT Credit

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors)   (2195 Points)

29 January 2010  
Hi to all, my query is as follows, A has taken CENVAT credit of Rs.10000(Based on Excise Invoice) during 2007. However he has paid only Rs.6000/- to his supplier. Hence there is an excess availment of credit to the extent of Rs.4000/-.(As per Excise Invoice ED Is Rs.10000/-) What i feel is that Rs.4000/- must be paid to the supplier. If this is done, there would be no excess availment