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
Interest on Cenvat Calculated from Date of Input Removal if Returned After 180 Days Under Rule 4(5)a. A query was raised regarding interest calculation on Cenvat if materials sent to a job worker under Rule 4(5)a of the Cenvat Credit Rule, 2004, are not returned within 180 days. The inquirer reversed the Cenvat after 10 months and sought advice on whether interest should be calculated from after 180 days or from when the Cenvat was taken. The response clarified that interest should be calculated from the date of removal of inputs for job work purposes. (AI Summary)
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