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Excise Duty -cenvat credit after 5 years

JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)

11 August 2010

Due to lack of knowledge & oversight, Project Engineer of Supplier Company "Y" & Company "X" ( who has given the project award) does not avail cenvat credit on Free Supply Materials for Project capital & revenue nature items ( free means no payment for materials value but all duties) and "Y" now requests "X" to pay back excise duty ( which was paid by "Y" at the time of despatch of value , after 5 years and then claim cenvat credit, is it legally sustainable.Kindly advise with case laws, rules, if any.

Thanks in advance.

Regards,

J Banerjee

11.8.10

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4 Replies

JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)
Replied 11 August 2010

Kindly rush your considered / valuable opinion.

Thanks.

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Rishi (Account Officer) (26 Points)
Replied 21 August 2010

Cenvat credit rules 2004 does not mention any period till that time we can take credit. So if it happened than you should not worry at all and take credit in full.

Previously CENVAT credit rules 2002 mentions a restriction of 180 days after which you can not take credit. But CENVAT credit rules 2004 does not mention any such restrictions. But maintain proper documentation in case of any query from excise department.

So take full credit of excise as there are such cases when Supreme court has allowed cenvat credit even after 5 years.