Interest caluclation on cenvat if material not return within 180days

[Krishan Gopal]

 Dear Sir,

If material sent to job worker under Rule 4 (5)a of Cenvat Credit Rule, 2004, and the material are not return back in factory within 180 days then we have to reverse cenvat on that material but we have reversed the cenvat after 10 months.

 Please advise: Whether interest should be calculated after 180 days or when cenvat has been taken.

 Krishan Gopal

[Mahir S]

From date of removal of inputs for job work purpose.

AI Summary

Interest on cenvat where job work inputs are not returned accrues from the date of removal of those inputs. Inputs sent to a job worker under Rule 4(5)(a) must be reversed if not returned within the prescribed period; interest on the un-reversed Cenvat credit accrues from the date of removal of the inputs for job work until the credit is reversed or regularised.