INTEREST PAYMENT

[SNEHAL SHAH]

sIR,

Our one unit located at surat and now a days excise audit continue auditore raised point for some cenvate credit wrongly awailed -- Rs.1200000 ( twelves lacds ) before 31-03-2011 and Rs.500000 ( five lacs ) after 31-03-2011 . Please give effect of interst payemtn . Please give interest % how interst payment liable .

Regards,

SACHIN

 

AI Summary

Interest on wrongly availed cenvat credit accrues from date of wrongful availment until payment; applicable rates change after budget.
Interest on wrongly availed CENVAT credit is payable from the date of wrongful availment until actual payment; interest must be apportioned and computed at the pre budget rate for the period up to the budget effective date and at the post budget rate thereafter, and added to the principal for recovery.