https://www.taxtmi.com/forum/issue?id=107258 Whether a one percent monthly penalty applies when CENVAT credit on input services is reversed without having been utilised hinges on the distinction between credit "taken" and credit "taken and utilised." Rule 14 of the Cenvat Credit Rules and cross referenced statutory recovery and interest provisions govern recovery; amendments inserting "taken and utilised" limit interest exposure for reversals after the amendment. No clear service tax provision prescribes a flat one percent monthly penalty for reversing unused credit, though certain central excise return-payment rules impose a one percent monthly charge for declared but unpaid duty. en-us Mon, 01 Sep 2014 10:39:17 +0530 Thu, 23 Jan 2025 15:57:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=107258 Whether a one percent monthly penalty applies when CENVAT credit on input services is reversed without having been utilised hinges on the distinction between credit "taken" and credit "taken and utilised." Rule 14 of the Cenvat Credit Rules and cross referenced statutory recovery and interest provisions govern recovery; amendments inserting "taken and utilised" limit interest exposure for reversals after the amendment. No clear service tax provision prescribes a flat one percent monthly penalty for reversing unused credit, though certain central excise return-payment rules impose a one percent monthly charge for declared but unpaid duty. Discussion-Forum Service Tax Mon, 01 Sep 2014 10:39:17 +0530 https://www.taxtmi.com/forum/issue?id=107258