cenvat credit reversal

[yateen vyas]

Sir,

if cenvat credit taken on an invoice in june due to mistake same is taken in December again so now what will provision and it is also utilized.now interest is payable or not ?

[DR.MARIAPPAN GOVINDARAJAN]

You are to reverse the excess credit taken and service tax to that extent along with interest is payable.

[Mahir S]

Yes sir, interest is payable for such cenvat credit wrongly availed twice and already availed/utilized.

An offence case may also be booked on detection by the department.

[yateen vyas]

i already have amount in remaining balance so will it come under utilized category or not.

[yateen vyas]

like amount of credit taken is 10,000 and remaining balance in part 2 is 2 Lac

[Mahir S]

Sir,

In your case, it will not fall under the utilization category. However, it is advisable to reverse the credit that was mistakenly availed in the month of December 2014.

[yateen vyas]

Thanks to all .

AI Summary

Cenvat credit reversal: excess or duplicated credit requires reversal and triggers interest and tax liability, with possible offence proceedings.
Excess or duplicate cenvat credit must be reversed and the corresponding service tax accounted for, with interest payable on the tax attributable to the excess/duplicated credit; detection may lead to offence proceedings. If the later-availed credit remains unutilized in the credit ledger, the recommended corrective step is reversal of the mistaken credit, which prevents classification as utilization but still requires payment of tax and interest.