CIR NO. 897/17/2009-CX, DT. 03/09/2009
- Document type
- Circular
- Reference no.
- P
- Dated
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.
2. The matter has been examined. It is seen that the Tribunal decision and the High Court judgement referred to above, was delivered in the context of erstwhile Rule 57I of the Central Excise Rules, 1944 and that the Supreme Court order under reference is only a decision and not a judgement. Since, the Rule 14 of the CENVAT Credit Rules, 2004, is clear and unambiguous in the position that interest would be recoverable when CENVAT credit is taken or utilized wrongly, it is clarified that the interest shall be recoverable when credit has been wrongly taken, even if it has not been utilized, in terms of the wordings of the present Rule 14.
3. Trade & Industry as well as field formations may be suitably informed.
4. Receipt of this circular may kindly be acknowledged.
5. Hindi version will follow.
Yours faithfully,
(Amish Kumar Gupta)
OSD (CX-8)