I wanted to know what is the time period after receipt of raw material / invoice date to the premises of manufacturer for availling a CENVAT credit.
Is their any notification available in central, excise rule
4 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 17 August 2012
immediately after the receipt it should be accounted, however there is no time limit prescribed, but in no case it should exceed the financial year ending, as after finalization of accounts, such credit can not be taken of previous year.
Damodaran J
(ABC)
(34 Points)
Replied 17 August 2012
As per law credit should be taken "immediately". There is definition for "Immediate". There is a judgement from Karnataka court that "Immediate" means 6 months.
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 17 August 2012
Here "immediately" means it should be taken at the earliest option available.
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 19 August 2012
No time limit is precribed under the law for taking Cenvet credit.In rule 4 of the cenvet credit rule the word used is 'immediately'.The department has already clarified that immediately does not mean that if the same is not taken as soon as input is received in the factory,the benefit of credit is denied [chapter 5 para 3.5 CBEC's supplementary instruction].There are numerous judicial pronouncement in this regard which says that in Law no time limit is prescribed for taking cenvet Credit.
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