Conventional Tax System DetailsABC Purchase110165 Value
Added1004035 Sub Total100150200 Add Tax @ 10%101520 Total110165220
CA RIMA MEHTA, [email protected] 2
Slide 3
Tax Credit System under VAT DetailsABC Purchase100140 Value
Added1004035 Sub Total100140175 Add Tax @ 10%101417.5
Total110154192.5 CA RIMA MEHTA, [email protected]
Slide 4
Need of Cenvat scheme To remove the effect of tax on tax. To
remove cascading effect of tax. To reduce the value of end product
and taxing value of end product by giving the credit of duty paid
by previous dealer or purchaser. CA RIMA MEHTA,
[email protected]
Slide 5
Rule 1. Short title, extent and commencement This rules extent
to whole of India : Provided that nothing contained in these rules
relating to availment and utilisation of credit of service tax
shall apply to state of Jammu and Kashmir. CA RIMA MEHTA,
[email protected]
Slide 6
Which duties are available as credit ? Credit of excise duty on
inputs and capital goods and service tax on input services is
available. Rule 3(1) : More specifically, credit of following
duties paid are available. All the duties mentioned in Rule 3(1) of
the said rules shall form a Pool. 1.Excise Duty (except goods
exempted under 1/2011-C.E. 2.Education Cess and Secondary Higher
Education Cess 3.Additional Duty under Sec 3(3) of Customs Tariff
Act equivalent to duty of excise. 4.Additional Duty under Sec 3(5)
of Customs Tariff Act equivalent to VAT. 5.Service Tax. 6.National
Calamity contingent duty. CA RIMA MEHTA,
[email protected]
Slide 7
For which payment credit can be utilised? [Rule 3(4)] Sr.
No.Particulars 1.Any duty of excise on any final product 2.An
amount equal to CENVAT credit taken on inputs if such inputs are
removed as such or after being partially processed 3.An amount
equal to CENVAT Credit taken on capital goods if such capital goods
are removed as such or after putting in to use or as scrap
4.Service Tax on any output service. 5.An amount under Rule 16(2)
of Central Excise Rules, 2002. i.e. Payment of Duty on goods
brought to factory for being re made, refined, reconditioned and
removed after processing. CA RIMA MEHTA,
[email protected]
Slide 8
Certain specifications for utilising credit One to one
co-relation not required in Cenvat. The credit is inter-changeable,
except following: Credit ofSpecification for Utilisation Additional
Duty leviable under sec.3(5) of Customs Tariff Act Cannot be
utilised for payment of Service Tax on any output service National
Calamity Contingent DutyCan be utiliised only against payment of
said duty i.e. NCCD Any Duty or Service TaxCannot be utilised for
payment of Clean Energy Cess Additional Duty of Excise under Sec 85
of Finance A ct, 2005 Can be utiliised only against payment of said
duty i.e. additional duty under Sec 85. Any Duty or Service
TaxCannot be utilised for liab under RCM. CA RIMA MEHTA,
[email protected]
Slide 9
When can we avail credit what are the specifications in this
regard? (Rule 4) Credit ofTime of Availment InputsImmediately on
receipt of inputs in the factory of manufacturer or premises of
output service provider. For Service provider maintenance of
documentary evidence of delivery is required. Capital GoodsAt any
point of time in given FY not exceeding 50% of the DUTY PAID.
Cenvat credit of 100% can be availed when capital goods are removed
as such in same FY. Credit of Additional Duty under sec.3(5) of
Customs Tariff Act, : 100% available immediately on receipt of CG
in factory Even if any value based exemption is availed, 100%
credit is available of duty paid on such CG in same FY. CA RIMA
MEHTA, [email protected]
Slide 10
When can we avail credit what are the specifications in this
regard? Balance of credit of CG can be taken in any subsequent FY.
Depreciation cannot be claimed on the duty on which credit is
availed. Credit is available even if CG is acquired on lease, hire
purchase or loan. Cenvat on Input and CG is available if it is sent
to job worker for further processing and received back in 180 days
from the day it is sent. Input ServiceOn the day on which invoice,
bill or challan is received. If S.Tax is paid under RCM, on the Day
on which is is paid by way of challan CA RIMA MEHTA,
[email protected]
Slide 11
When can we avail credit what are the specifications in this
regard? Input ServiceCredit is to be reversed if the payment of
bill or invoice is not made within 3 month of the date of
bill/invoice. Once again credit can be availed on or after the
payment is made for such reversed credit. If any amount is refunded
or credit note is received, credit to that extent is to be
reversed. CA RIMA MEHTA, [email protected]
Slide 12
What are the documents on the basis of which duty can be
availed? (Rule 9) Original or Duplicate Invoice issued by
manufacturer or importer, First stage dealers Invoice or second
stage dealers invoice, Bill of Entry, Supplementary Invoice A
Challan evidencing payment of service tax, An invoice, bill or
challan issued by a provider of input service, An invoice, bill or
challan issued by a provider of input service distributor. CA RIMA
MEHTA, [email protected]
Slide 13
CENVAT CREDIT OF CAPITAL GOODS [Rule 2(a)] Capital Goods Means
: Following goods namely All goods falling under chapter
82,84,85,90,6805,6804 Pollution control equipment Components,
spares and accessories of such goods Moulds and dies, jigs and
fixtures. Refectories and refractory materials. Tubes and pipes and
fittings. Storage tank. Motor vehicles for providing output
services including dumpers and tippers. used. 1.In the factory of
the mfg. of the final products but does not include any equipment
or appliances used in an office 2.Outside the factory for
generation of electricity. 2.For providing output services. CA RIMA
MEHTA, [email protected]
Slide 14
CENVAT CREDIT OF CAPITAL GOODS Chapter Head Description of
Goods Chapter 82Tools, implements, cutlery, spoons and forks of
base metal; parts thereof of base metal Chapter 84Nuclear reactors,
boilers, machinery and mechanical appliances; parts thereof Chapter
85Electrical machinery and equipment and parts thereof; sound
recorders and re-producers, television image and sound recorders
and reproducers, and parts and accessories of such articles Chapter
90Optical, photographic, cinematographic, measuring, checking,
precision, medical or surgical instruments and apparatus; parts and
accessories thereof Head 6804 and 6805 Articles of stone, plaster,
cement, asbestos, mica or similar material CA RIMA MEHTA,
[email protected]
Slide 15
CENVAT Credit on Motor Vehicle Cenvat Credit is allowable on
motor vehicles (except under heading Nos. 8702, 8703, 8704, 8711
and their chassis) to manufacturers. The excluded chapter heads are
relating to motor vehicles for transport of 10 or more persons
(including driver), motor cars, station wagons, motor vehicles for
transport of goods and motor cycles. In effect, Cenvat credit is
available only in respect of tractors, special purpose motor
vehicles, work trucks, bicycles, baby carriages and trailers and
parts and accessories of all motor vehicles to the manufacturers,
w.e.f. 1-4-2012. CA RIMA MEHTA, [email protected]
Slide 16
CENVAT Credit on Motor Vehicle Cenvat credit of motor vehicles
covered under headings 8702, 8703, 8704 and 8711 and their chassis
is available only if they are registered in the name of service
provider and to specified service providers like: courier, renting
or hire of motor vehicles, transportation of passengers, motor
driving training schools, transportation of inputs and capital
goods used for providing an output service (Servicing of motor
vehicles not included) CA RIMA MEHTA, [email protected]
Slide 17
ANALYSIS & CASE LAWS FOR CAPITAL GOODS 1.For manufacture :
term employed is Used in the factory of Manufacturer For Service
Provider : term employed is Used for providing output service. 2.
The term employed is for providing not in or in relation to. 3. It
is burden on assessee to satisfy whether capital goods is used.
However, it is required or not could not be decided by revenue.
(CCE vs. Hindustan Coca Cola Beverages Ltd. 2011(271)ELT 314(T). CA
RIMA MEHTA, [email protected]
Slide 18
ANALYSIS & CASE LAWS FOR CAPITAL GOODS 4.Scope of term
Factory : Inputs used at different places nearest to factories to
produce intermediate goods are eligible for input credit. Rope way
used out side the factory was allowed as eligible credit as capital
goods. (Birla Corporation Ltd. vs. CCE 2005(186)ELT266(SC)
5.Supporting structure of plant and machinery if it is not integral
part of machinery it cannot be called as capital goods. (Vandana
Global Ltd. vs. CCE 2010(253)ELT440(T-LB) Explanation 2 : Input
include goods used in the manufacture of capital goods which are
further used in the factory of manufacturer but shall not include
cement, angles, channels etc other items used for construction of
factory shed, building or laying of foundation or making of
structures for support of capital goods. CA RIMA MEHTA,
[email protected]
Slide 19
Exempted Service [Rule 2(e)] Wef. 01.04.2011, exempted service
include trading as well as taxable service whose part of value is
exempt on the condition that no credit of input and input service,
used for providing taxable service shall be taken. Wef. 01.07.2012,
any service on which service tax is not leviable in terms of sec
66B is also called exempt service which means all the activities
which is not service in terms of sec 65B(44) or falling under sec
66D is also called exempt service. In exempted transaction, tax is
not payable on final product and input credit is not available
Services exported shall not be called as exempt service. CA RIMA
MEHTA, [email protected]
Slide 20
Exempted Goods [Rule 2(d)] As per Rule 2(d) of Cenvat Credit
Rules, 'exempted goods' means goods which are exempt from whole of
duty of excise leviable thereon and includes goods which are
chargeable to 'Nil' rate of duty and the goods in respect of which
the benefit of an exemption under Notification No. 1/2011-CE dated
1st March 2011 is availed [The words in italics have been inserted
w.e.f. 1-4-2011]. In exempted transaction, tax is not payable on
final product and input credit is not available CA RIMA MEHTA,
[email protected]
Slide 21
Input for Output Service and Final product In terms of Rule
2(k)(iv), input means all goods used for providing any output
service except: (a)light diesel oil, high speed diesel oil, petrol,
(b)any goods used for construction of building, civil structure or
part thereof or laying of foundation or making of structure for
support of capital goods, (c) capital goods, (d)motor vehicle, (e)
any goods such as food items, goods used in guest house,
residential colony, club or recreational facility, clinical
establishment, when such goods are used primarily for personal use
or consumption of any employee. CA RIMA MEHTA,
[email protected]
Slide 22
Input for Output Service and Final product Goods having no
relation with manufacture of final product shall not be eligible
for credit. As per CBE&C circular, even office furniture and
stationery is eligible as input. Therefore relation with the
manufacture shall be construed in the wider sense. CA RIMA MEHTA,
[email protected]
Slide 23
Input for Final Product In terms of Rule 2(k)(i), input means
all goods used in the factory by a manufacturer of final product
including accessories cleared along with final product, the value
of which is included in the value of final product and goods used
for providing free warranty for final product. Exclusions as
mentioned for Service providers remain as it is for manufacturer of
final product. Input consumed for quality control in laboratory,
before actual process of manufacturing, is eligible for taking
credit. (Tata engineering and locomotive Co. Ltd.
2010(256)ELT2010-56(Bom) CA RIMA MEHTA,
[email protected]
Slide 24
Input Service [Rule 2(l) Definition of Input service contains 3
clauses : 1. Means 2. Includes and 3. Excludes. If the word
include/s is used it means that the definition is not exhaustive
but it is inclusive, i.e. it expands the meaning - Doypack Systems
(P.) Ltd. v. UOI (1988) 2 SCR 962 = 1988 2 SCC 299 = 65 Comp Cas 1
= 36 ELT 201 = AIR 1988 SC 782 * Lucknow Development Authority v. M
K Gupta (1994) 1 SCC 243 = 1994 AIR SCW 97 = AIR 1994 SC 787. Input
Service means any service, - i. Used by a provider of output
service for providing an output service or ii. Used by mfg. whether
directly or indirectly in or in relation to the mfg. of final
products and clearance of final products up to the place of
removal, CA RIMA MEHTA, [email protected]
Slide 25
Input Service Input Service Includes services used in relation
to folllowing: Modernization, renovation, repair of factory or
premises of output service provider or office building
Advertisement or sales promotion Market researchStorage up to place
of removal Procurement of InputsAccounting AuditingFinancing
RecruitmentQuality control Coaching and trainingComputer networking
Credit ratingShare registry SecurityBusiness exhibition Legal
servicesInward transportation of goods and capital goods, Outward
transportation up to place of removal CA RIMA MEHTA,
[email protected]
Slide 26
Input Service but excludes A. Service portion in the execution
of a works contract and construction services used for construction
or execution of works contract of bldg. & laying of foundation
or making of structures for support of capital goods except for
provision of one or more of specified service. B. Services of
renting of motor vehicles, which is not a capital goods. BA.
Service of general insurance business, servicing, repair and
maintenance, in relation to motor vehicle except A. a mfger. of
motor vehicle or B. An insurance co. In respect of motor vehicle C.
Such as those provided in relation to outdoor catering, beauty
treatment, health services, cosmetic life and health insurance and
travel benefits extended to employees on leave when such services
are used primarily for personal purpose of any employee. CA RIMA
MEHTA, [email protected]
Slide 27
Input service credit relating to motor vehicle The definition
of input service implies that, no other assessee can avail the
credit of renting of motor vehicle and insurance of motor vehicle
of specified chapter heads, except the output service is any of the
following: courier, renting or hire of motor vehicles,
transportation of passengers, motor driving training schools,
transportation of inputs and capital goods used for providing an
output service For motor vehicles other than specified chapter
heads, no specification for output service. CA RIMA MEHTA,
[email protected]
Slide 28
Wasteful Expenditure as per department for non-eligibility of
Cenvat credit Open society - Building for office or factory is a
waste Employees, staff, should travel by public bus or airplane.
Motor vehicle, taxi is luxury Employee benefit is a luxury employ
only casual labour Credit shall not be denied merely on the ground
that input service was not availed within the factory premises. CCE
vs. Ultra tech Cement Ltd. 2012(278)ELT523(T) CA RIMA MEHTA,
[email protected]
Slide 29
Input service relating to construction In the first extended
part, for input service, the expression employed are includes
services used in relation to modernization, renovation or repair of
a factory, premises of provider of output service or an office
relating to such factory or premises but in excluded part, only few
categories [such as wc, construction service, architect, chartered
engineer, licensed surveyor] are restricted which is in relation to
construction of building or civil structure or part thereof. It
means combined effect is all input services except the excluded
category used for setting up of factory, or office premises
relating to factory or office premises relating to factory or
laying of foundation or making of structure for support of capital
goods shall not be permissible as input service. However such
restriction is not applicable in case of modernisation, renovation
or repair of such factory or civil structure or premises of office
building. CA RIMA MEHTA, [email protected]
Slide 30
Input or Capital Goods removed as such Rule 3(5), An amount
equal to credit availed in respect of such inputs or capital goods
shall be paid. Such removal shall be made under the cover of
invoice. Payment shall not be required where inputs are removed for
providing output service. Such payment shall be made by debiting
the cenvat credit or by way of cash. CA RIMA MEHTA,
[email protected]
Slide 31
Capital goods removed after being used Manufacturer or output
service provider shall have to pay an amount equal to Cenvat Credit
taken on said capital goods reduced by percentage points calculated
by SLM as specified below for each quarter from the date of taking
cenvat credit. However if the duty leviable on transaction value is
higher than amount so calculated, credit to be paid is that of duty
on transaction value. If capital Goods are cleared as waste/scrap,
there shall be paid amt equal to duty liability on transaction
value. CA RIMA MEHTA, [email protected]
Slide 32
Capital goods removed after being used (a)for Computer and its
peripherals : (b) for capital goods other than computers, @ 2.5%
for each quarter. Particulars% reversal For each quarter in the
first year @10 For each quarter in the second year @8 For each
quarter in the third year @5 For each quarter in 4 th and 5 th year
@1 CA RIMA MEHTA, [email protected]
Slide 33
Reversal of Cenvat if inputs partially or fully written off
Cenvat credit reversal is required even if the inputs are written
off fully or partially in books of account (w.e.f. 1-3-2011) [so
far, such reversal was required only if inputs were completely
written off]. applicable when provision made in books of account to
that effect. CA RIMA MEHTA, [email protected]
Slide 34
Reversal for duty remitted on goods manufactured [Rule 3(5c)]
Duty on final product is remitted under Rule 21 of Central Excise
Rules, 2002. Rule 21 speaks about remission of duty when goods have
been lost/destroyed by natural cause or unavoidable accident or
claimed as unfit for consumption at the time before removal. Cenvat
credit taken on inputs and input services* used to manufacture said
goods shall be reversed. * Reversal of input services added from
08.01.2014 vide notification no. 01/2014. CA RIMA MEHTA,
[email protected]
Slide 35
Procedure for Reversal By way of debiting the Cenvat Credit
account or otherwise. Before 5 th day of following month/quarter as
the case may be except for the month of March, where such payment
shall be made on or before 31 st March. If an assessee fails to
pay, it shall be recovered under Rule 14. Applicable Penalty under
Rule 15 : Not exceeding duty or S.tax liability on goods or service
or 2000/- Rs. w.e. is higher. Over and above, penalties under
Excise and Service Tax is also be levied. CA RIMA MEHTA,
[email protected]
Slide 36
Refund of Cenvat Credit [Rule 5] Applicable to exporter of
goods or service without payment of duty. Refund amt =(Export t/o
of goods+ Export t/0 of services)/Total t/o * Net Cenvat Credit.
Net cenvat credit = total credit amount reversed in terms of Rule
3(5C). i.e. remitted under rule 21 of Central excise Rules 2002. No
refund is admissible if assessee avails drawback. CA RIMA MEHTA,
[email protected]
Slide 37
Refund of Cenvat to service providers providing services taxed
on RCM Rule 5B: A provider of service providing serivices notified
under sub-section (2) of section 68 of Finance Act, and being
unable to utilise cenvat availed on input and input services for
payment of s.tax on such output services, shall be allowed refund
of such unutilised cenvat credit. Definition of Output services:
Output Service means any service provided by a provider of service
but shall not include a service,- (1) Specified in Sec 66D of
Finance act, or (2)where whole of S.tax is liable to be paid by
receipient of service. CA RIMA MEHTA, [email protected]
Slide 38
Rule 6 of Cenvat Credit Rules Rule 6 applies where both
exempted goods and taxable goods are manufactured or exempted and
taxable services provided Payment of amount increased to 6% in case
of exempted services w.e.f. 1-4-2012 4 options are available to
assessee CA RIMA MEHTA, [email protected]
Slide 39
Four Options (1) Maintain separate inventory and accounts of
receipt and use of inputs and input services used for exempted
goods/exempted output services Rule 6(2) of Cenvat Credit Rules (2)
Pay amount equal to 6% of value of exempted goods (if he is
manufacturer) and of value of exempted services (if he is service
provider), 2% in case of transport of goods or passengers by rail.
W.e.f. 01.04.2012. Rule 6(3)(i) as amended w.e.f. 1-4-2012 [The
amount payable was 5% 31-3-2012]. (Continued) CA RIMA MEHTA,
[email protected]
Slide 40
Four Options (3) Pay an amount equal to proportionate Cenvat
credit attributable to exempted final product/ exempted output
services, as provided in rule 6(3A) Rule 6(3)(ii) of Cenvat Credit
Rules (4) Maintain separate accounts for inputs and pay amount as
determined under rule 6(3A) in respect of input services - Rule
6(3)(iii) of Cenvat Credit Rules as inserted w.e.f. 1-4- 2011. CA
RIMA MEHTA, [email protected]
Slide 41
Value for Services under abatement scheme Entire Value will be
treated as value of exempted service for rule 6 However, if 6%
amount is payable, it will be on amount on which service tax not
paid (e.g. if service tax paid on 40%, amount of 6% will be on
balance 60%. CA RIMA MEHTA, [email protected]
Slide 42
Exemptions subject to condition of non- availment of Cenvat
Credit Rule 6(3D) (inserted w.e.f. 1-4-2011) It states that payment
of amount under rule 6(3) shall be deemed to be Cenvat credit not
taken for purpose of an exemption notification where exemption is
granted on condition that no Cenvat on input and input services is
availed. CA RIMA MEHTA, [email protected]
Slide 43
Value of service for services under composition Schemes for
rule 6 In case of services covered under composition scheme, value
for applying rule 6 will be tax amount divided by rate of service
tax applicable under general exemption. Present rate is 12% If
gross amount Rs. 1,000, service tax paid Rs. 48. Then value of
taxable service for rule 6 would be Rs. 400. If service tax rate
10% then service tax would be Rs 40 and vale will be Rs 400. CA
RIMA MEHTA, [email protected]
Slide 44
Principle Behind Calculations under Rule 6 Take entire Cenvat
credit of inputs and input services used in exempted as well as
taxable final products and exempted as well as taxable services. At
the end of month, assessee should calculate and reverse Cenvat
credit attributable to exempted final products and exempted
services on provisional basis CA RIMA MEHTA,
[email protected]
Slide 45
Principle Behind Calculations under Rule 6 1.Rule 6(3A)(b)(i)
Inputs used for exempted final products 2.Rule 6(3A)(b)(ii) Inputs
used for exempted services (On proportionate basis, based on ratio
of previous year) 3.Rule 6(3A)(b)(iii) Input services used for
exempted final products and exempted services (On proportionate
basis based on ratio of previous year). Total 1+2+3 = amount to be
reversed every month on provisional basis CA RIMA MEHTA,
[email protected]
Slide 46
Principle Behind Calculations under Rule 6 Assessee should
calculate the ratios on actual basis and make fresh calculations
and pay difference, if any, before 30th June. If it is found that
he had paid excess amount based on provisional ratio, he can adjust
the difference himself by taking credit. CA RIMA MEHTA,
[email protected]
Slide 47
Provision in case of traded goods Provision in case of traded
goods : Difference between sale price and cost of goods sold
(determined as per generally accepted accounting principles) or 10%
of Cost of goods sold w.e. is more, is to be treated as value of
exempted service. Treaded goods shall be included in the exempt
service as it consist in the negative list under sec 66D of the
Finance Act, 1994 which is very well included in the definition of
Exempt Service. Therefore credit shall be reversed in that regard.
Value thereof shall be as mentioned above. CA RIMA MEHTA,
[email protected]
Slide 48
Non applicability of reversal provision on specified
transactions Export of goods and export of services, Supplies to
SEZ, EOU, EHTP, STP, Goods supplied against international
competitive bidding, goods supplied to UN organisations, foreign
diplomatic missions or diplomatic agents, Provision of services to
SEZ (where exemption is available) Supplies made for setting up of
Solar power generation projects. (inserted by notification no.
25/2012 w.e.f. 08.05.2012) CA RIMA MEHTA,
[email protected]
Slide 49
Provision for Banking Company This provision applies to not
withstanding anything contained in sub-rule (1),(2),(3) of Rule 6.
In respect of banking service, the Bank or NBFC is required to pay
amount equal to 50% of Cenvat Credit availed on inputs and input
services [Rule 6(3B) of Cenvat Credit Rules as inserted w.e.f.
1-4-2011]. CA RIMA MEHTA, [email protected]
Slide 50
Returns [Rule 9] For Manufacturer : within 10 days from the end
of the said month/quarter as the case may be. For First stage
dealer/Second stage dealer : within 15 days from the close of each
quarter. For Output Service provider : half yearly return in the
form specified by the end of the month following particular half
year. CA RIMA MEHTA, [email protected]
Slide 51
Returns For Input Service Distributor : Half Yearly return in a
form specified giving the details of credit received and
distributed during the said half year. Revised Return : this
facility is available only for Output service provider and input
service distributor to correct any mistake or omission within a
period of 60 days from the date of filing of original return.
however such revised return can be filed only once. All such
returns shall be filed electronically. CA RIMA MEHTA,
[email protected]
Slide 52
Information relating to principal inputs Rule 9A. A declaration
in a specified form shall be furnished annually by 30 th April of
each FY in respect of each of the excisable goods manufactured,
principal inputs and quantity of principal inputs required for use
in a manufacture of unit quantity of such final product. A monthly
return shall be filed within 10 days from closure of the each
month/quarter as the case may be in respect of receipt and
consumption of each principal input with reference to quantity of
final product manufactured by him. CA RIMA MEHTA,
[email protected]
Slide 53
Information relating to principal inputs Principal inputs :
means any input which is used in the manufacture of final product,
cost of such input constitute not less than 10% of the total cost
of raw materials for the manufacture of a unit quantity of given
final product. CA RIMA MEHTA, [email protected]
Slide 54
Input Service Distributor Rule 7 HO or Branch or Depot can pass
on credit to factories. They have to register themselves with the
excise dept, file returns etc. No distribution if the credit is
attributable to services used wholly by one unit. That shall be
distributed to that unit only. No credit shall be added to pool
where input service is exclusively used for exempted goods or
exempted service. Distribution on turnover basis of previous
quarter. CA RIMA MEHTA, [email protected]
Slide 55
Recovery of Cenvat Credit wrongly taken (Rule 14) Where the
Cenvat Credit has been [taken and utilised wrongly]* or has been
erroneously refunded, the same along with interest shall be
recovered and the provisions of sec 11A of the Central Excise Act
and sec. 73 and 75 of Finance Act, shall apply mutatis mutandis for
effecting such recovery. * earlier the words were taken or utilized
which were harsh enough which is libralised w.e.f. 01.04.2012 vide
notification no. 18/2011 CE(NT). CA RIMA MEHTA,
[email protected]