Purchase Booked with Rs.16839 more Wrongly in jan,2012

[ramya Srinivas]

Hi,

In cenvat returns a purchase bill was booked wrongly With 16839 Rs more in value. this error was latter found in reconciliation duirng Preparation of Cenvat For April month. so wat is the course of action to be done now. pl suggest

thanks in advacne

Regards

ramya

[YAGAY and SUN]

You  may reverse the  excess amount of CENVAT credit.  Also intimate to the Concerned authority for this clerical error and mention it in the Statutory Return.

[NEERAJ KUMAR, RANCHI]

yes, as correctly said above, reverse the credit and intimate the range office about the same. you do not need to pay any interest if credit not utilized to pay duty, if utilized pay applicable interes.

AI Summary

CENVAT credit reversal required for erroneously booked purchases; notify tax office and report in statutory return-interest only if credit used.
The operative remedy is to reverse the excess CENVAT credit, record the correction in the statutory return and inform the appropriate range office; no interest is payable if the excess credit was not utilized, but applicable interest must be paid if it was used to discharge duty.