Mistakenly cenvat credit availed

[RAM SHARMA]

Dear Experts,We have excess cenvat credit in our books. We have reversed cenvat credit which is wrongly taken by us. Whether we will be liable to pay interest on reversed cenvat credit. Please advice.Thanks&Regards

[Mahir S]

Sir,

From 17.03.2012 onwards, if cenvat credit is availed but not utilized, then there is no need to pay any interest thereon.

Hence, if excess cenvat credit balance was available in the books of accounts from the time the credit was availed till the time it was reversed, then no need to pay interest.

AI Summary

Cenvat credit interest: excess unutilized credit reversed need not attract interest under the current rule. Liability to pay interest depends on whether excess Cenvat credit was utilized; where credit was availed but remained unutilized until reversal, no interest is payable on the reversed amount.