Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization-reg.

Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization-reg. https://www.taxtmi.com/circulars?id=7358 The CENVAT Credit Rules unambiguously require recovery of credit taken or utilized wrongly with interest; accordingly, interest is recoverable when credit has been wrongly taken even if it has not been utilized. The Board clarifies this to resolve conflict with earlier decisions delivered under the former Central Excise Rules and directs that field formations and trade be informed that reversal before utilization does not eliminate interest liability under the current rules. en-us Thu, 03 Sep 2009 00:00:00 +0530 Thu, 03 Sep 2009 17:44:00 +0530 TaxTMI RSS Generator Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization-reg. https://www.taxtmi.com/circulars?id=7358 The CENVAT Credit Rules unambiguously require recovery of credit taken or utilized wrongly with interest; accordingly, interest is recoverable when credit has been wrongly taken even if it has not been utilized. The Board clarifies this to resolve conflict with earlier decisions delivered under the former Central Excise Rules and directs that field formations and trade be informed that reversal before utilization does not eliminate interest liability under the current rules. Circulars Central Excise Thu, 03 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/circulars?id=7358