If we taken Excise credit wrong and then reverse with interest in whcih section we pay interest

[Guest]

Dear Sir,

We taken Cenvat credit wrongly when we indiantified it is wrong than we reversed with interest.

the interest amount which we paid in which section we mention inER-1.

Regards

Swapneswar

[KASTURI SETHI]

You may mention either Rule 14 (1)(ii) of Cenvat Credit Rules, 2004 or Section 11 AA of Central Excise Act or Section 75 of the Finance Act. If you mention only Rule 14(1)(ii) of Cenvat Credit Rules, 2004, that will also be sufficient because Rule 14 is subject to Section 11 AA of CE Act and Section 75 of the Finance Act.

[Mahir S]

Sir,

You can show interest paid under the heading -- details of other payment made --.in the ER -1 return.

AI Summary

Cenvat credit reversal: report interest paid under the procedural rule or corresponding statute in the ER 1 return. When erroneously taken Cenvat credit is reversed with interest, disclose the interest payment under the procedural rule for Cenvat adjustments or the corresponding statutory recovery and interest provisions; citing the procedural rule alone suffices as it is subject to the statutory provisions. In ER 1 return the interest may be shown under the heading for other payments or details of other payments to ensure the reversal and interest are reported.