Interest calculation for cenvat reversal

[Mathurthi RamKumar]

Dear Sir'sGreetings of the day...Kindly guide me for following problem. In excise audit officers found we wrongly take cenvat credit on capital goods. They give notice to reversal the cenvat amount along with interest. My doubt is..Invoice date is 05.03.2014 and we accounted in 15.03.14 and take cenvat credit in march and paid excise in April 5th. (march amount paid in april)Can i calculate interest for accounted date to till date (i.e 15.03.14) or utilized date (i.e 05.04.2014) to till date?Kindly guide me.RegardsM.RamKumar 99498 40959

AI Summary

Cenvat credit reversal interest runs from the date of availing credit until its repayment; misuse may attract penalty.
Interest on wrongly availed CENVAT credit is payable from the date the credit was taken (the accounting/availment date) until the date of repayment or reversal. Utilisation of wrongly taken credit to discharge duty exposes the final product to treatment as non-duty-paid and may attract confiscation and penalty. If sufficient credit balance exists to adjust the wrong availment, separate interest payment may not be required. The obligations arise under the CENVAT Credit Rules.