Interest on cenvat

[chaganti srinivas]

We have debited cenvat involved in the written off material as per audit obection. As per rule 3(5B), this amount can be claimed back by us as and when we put to use for further manufacturing. Do we need to pay interest on this amount, if no, please refer case laws or any circulars.

AI Summary

No Interest on Reclaimed CENVAT Credit Under Rule 3(5B) for Written-Off Material, Unless Delay in Reversal Occurs. A user inquired about the obligation to pay interest on CENVAT credit debited due to written-off material, as per audit objections, and whether interest applies when the credit is reclaimed under rule 3(5B) upon using the material for further manufacturing. The response clarified that there is no specific provision for interest under rule 3(5B) for such reversals. However, if there is a delay in reversing the credit, interest may be applicable from the date the reversal was due until it is actually made.