Can CENVAT be utilised for payement of interest?

I have not made certain payments of ST in respect of legal services which are chargeable under reverse charge mechanism and on which interest is payable.
I am aware that I must pay the ST liability under reverse charge in cash.
However my question is, whether i can pay the interest thereon using CENVAT Credit in lying in my books?

Thank you
Asked 2 years ago in Service Tax from Delhi, Delhi
Interest and Penalty in case of Service Tax is payable by cash only & no adjustment of CENVAT Credit is allowed.
Shiv Kumar Agarwal
CA, Delhi
245 Answers
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No you cannot use cenvat credit for payment of Interest. Before
01-03-2015, cenvat credit for  educational cess was to be utilised for payment of educational cess only and it was not permissible to use cenvat credit for educational cess could not be used for payment of service tax. Therefore you will have to pay interest in cash terms.
Vijay N. Kale
CA, Hyderabad
248 Answers
4.9 on 5.0
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