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Reversal of cenvat credit

bhupen (student) (47 Points)

30 September 2015

what are the consequences for the reversal of Cenvat credit of excise duty..

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5 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 30 September 2015

Question not clear.

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bhupen (student) (47 Points)
Replied 30 September 2015

If Cenvat credit of excise duty is taken already can it be reversed. If reversed then is there any penalty on it..

Niraj Kumar Sinha (Sr. Officer, SPSIL) (648 Points)
Replied 30 September 2015

Yes it can be reversed. There is no penalty for this. If it is reversed on account of wrong availment of CENVAT Credit then interest will be charged. If this is reversed on account of As such Sale or Purchase return, then no interest will be charged.

bhupen (student) (47 Points)
Replied 30 September 2015

Let's an example.. company A ordered excisable material from company B. While supplying the material company B has to submit DFT copy along with material sent. Company A excise team identified some error in DFT copy so the company returned the DFT copy for necessary correction. Company A didn't received rectified DFT copy. So the company A mailed to company B stating excise Amt will not be payable to u as we didint availed the credit of it. In this case what company B should do..