INTEREST PAYMENT, Central Excise

[SACHIN SHAH]

sIR,

Our one unit located at surat and now a days excise audit continue auditore raised point for some cenvate credit wrongly awailed -- Rs.1200000 ( twelves lacds ) before 31-03-2011 and Rs.500000 ( five lacs ) after 31-03-2011 . Please give effect of interst payemtn . Please give interest % how interst payment liable .

Regards,

SACHIN

 

Posts / Replies

[pradeep khatri]

Before budget interest was @ 13%  up-to 31-03-2011 and from 01-04-2011 interest is @ 18%.

[ROHAN THAKKAR]

 

Dear Sir,

It has been clarified vide circular No 942/03/2011-CX dated 14-03-2011 read with the Judgement of Supreme Court in the case of UOI v/s Ind-Swift Laboratories P Ltd  which clarifed that the interest is required to be paid from the date of wrong availment of cenvat credit till the date of actual payment.

The interest is required to be paid at 13% p.a till 31-03-2011 and from 01-04-2011, it is required to be paid at 18%. [Notification No 6/2011-CE(NT)