3[14. Recovery of CENVAT credit wrongly taken or erroneously refunded. –

(1) (i) Where the CENVAT credit has been taken wrongly but not utilised, the same shall be recovered from the manufacturer or the provider of output service, as the case may be, and the provisions of section 11A of the Excise Act or section 73 of the Finance Act, 1994 (32 of 1994), as the case may be, shall apply mutatis mutandis for effecting such recoveries;

(ii) Where the CENVAT credit has been taken and utilised wrongly or has been erroneously refunded, the same shall be recovered along with interest from the manufacturer or the provider of output service, as the case may be, and the provisions of sections 11A and 11AA of the Excise Act or sections 73 and 75 of the Finance Act, 1994, as the case may be, shall apply mutatis mutandis for effecting such recoveries.

4[(2)  *** ] ]

***********

Notes:

  1. Substituted vide notification no. 18/2012 CE(NT) dated 17-3-2012, w.e.f. 17-3-2012, before it was read as, “taken or utilized”
  2. Substituted vide notification no. 18/2012 CE(NT) dated 17-3-2012, w.e.f. 17-3-2012, before it was read as, “11AB”
  3. Substituted vide Not. 06/2015 – Dated 1-3-2015w.e.f. 1st day of March, 2015, before it was read as,

14. Recovery of CENVAT credit wrongly taken or erroneously refunded.-

Where the CENVAT credit has been 1[taken and utilised] wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of sections 11A and 2[11AA] of the Excise Act or sections 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries.”

  1. Omittted vide Not. 13/2016 – Dated 1-3-2016, w.e.f. 1st April, 2016, before it was read as,

“(2) For the purposes of sub-rule (1), all credits taken during a month shall be deemed to have been taken on the last day of the month and the utilisation thereof shall be deemed to have occurred in the following manner, namely: –

(i) the opening balance of the month has been utiIised first;

(ii) credit admissible in terms of these rules taken during the month has been utilised next;

(iii) credit inadmissible in terms of these rules taken during the month has been utilised thereafter.”