Cenvat Credit Register

[Sundresh Kumar]

Dear Team

We are importing material and paying cvd on import and also availing cenvat credit on cvd, we just had completed our excise audit in our factory for fy 13-14, while checking the cenvat credit register officer come to know that we have not debited the excise duty for Sep 13 in our cenvat credit register hence officer asked us to deposit the interest on said duty as it is not paid/adjusted in cenvat credit register.

We had enough credit balance lying in our cenvat credit register and after adjusting the Sep 13 excise duty we still had credit balance.

Though the excise return submitted by us for Sep 2013 had correct balance (we had debited the Sep 13 excise duty while submit the return) but still the officer has a view that we need to deposit the interest since we didnt adjust it in our cenvat credit register.

Kindly let me know if anyone face such issue and whether the officer is right, please let me know any case law related to this issue.

thanks & regards

AI Summary

Company Owes Interest on Unpaid Excise Duty Due to Cenvat Register Error, Confirms Section 11A of Central Excise Act. A company importing materials and availing Cenvat credit on countervailing duty (CVD) completed an excise audit for the fiscal year 2013-14. During the audit, it was discovered that the excise duty for September 2013 was not debited in the Cenvat credit register, prompting the officer to request interest payment on the unpaid duty. Although the excise return for September 2013 was correctly filed, the officer insists on interest payment due to the register discrepancy. A respondent confirmed the obligation to pay interest under Section 11A of the Central Excise Act, 1944, as the situation involves payment/reversal of monthly excise duty.