TaxTMI 
TaxTMI 
Dear Sir, we have re-imported goods due to rejection from our customer originally exported under DEPB scheme. My query is regarding calculation of interest on DEPB reversal. Please clarify whehter we have to pay interest from date of shipping bill or from the date of issue of DEPB license. If their is any circulare or notification in this regard please be quoted. Also inform rate of interest on DEPB reversal.
INTEREST CALCULATION ON DEPB REVERSAL
04 Feb 2012 
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Interest on DEPB reversal accrues from license utilization or bill of entry until reversal, with rate determined by issue date.
Interest on reversal of DEPB is payable where the licence has been utilised; interest runs from the date of utilisation-identified by one respondent as the Bill of Entry date-until reversal. CENVAT credits must be reversed with interest when the licence was utilised. The applicable interest rate varies with the DEPB issuance date; if the licence remains unutilised it may be surrendered to the issuing authority to close the file. (AI Summary)
Interest on reversal of DEPB is payable where the licence has been utilised; interest runs from the date of utilisation-identified by one respondent as the Bill of Entry date-until reversal. CENVAT credits must be reversed with interest when the licence was utilised. The applicable interest rate varies with the DEPB issuance date; if the licence remains unutilised it may be surrendered to the issuing authority to close the file. (AI Summary)