16 June 2017
we have a manufacturing unit , registered under state vat & excise also we set input vat against out vat paid in our monthly & quarterly returns,
Q. some of our supplier charged Excise in their invoice.
on 01.07.17 can we claim excise input on closing stock lying on 01.07.17????
16 June 2017
ok , one point more to clear, we dont claim cenvat credit on purchase made from excise able units we just pay excise on sale. thus dont have any cenvat credit in our excise returns
so can we claim excise input on stock of raw material lying on 01.07.16
Sorry to spoil your happiness, but the point is you cannot claim Input tax credit of said excise duty paid on Raw Material, since you are registered under Excise. This benefit is available only to those who are not registered under Excise Act. It is irrelevant that whether you claim the Cenvat Credit or not. Please refer to the Section 140(3) of CGST Act. Same is reproduce as under
"Section 140 (3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said registered person is eligible for input tax credit on such inputs under this Act;
(iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs;
(iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and
(v) the supplier of services is not eligible for any abatement under this Act:
Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed."
Therefore, it is recommended that while filing the last month return, please consider all the CENVAT Credit of raw material procured in last 12 months and file in the return. However this is subject to litigation by excise authorities about non filing of correct information, but only approach to claim the benefit is this only.
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