Tahseen Tabassum (CA-FINAL) (644 Points)
01 August 2009What is the difference between "utilise" and "avail"? As used in the following paragraph:
In respect of Cenvat credit of capital goods, he cannot utilise Cenvat credit on capital goods if it is availing SSI exemption. However,it can avail Cenvat credit on capital goods even when it is availilng exemption.
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 02 August 2009
utilise means to take the benefit of cenvat credit and avail means to pass an entry for cenvat credit.
P.Bashista
(Advocate)
(367 Points)
Replied 02 August 2009
It basically means that when it (the SSI Exempted Unit) is buying a capital good the cenvat credit can be “availed” and can be kept in the cenvat credit account but he cannot use (i.e. utilize to pay any duty) with that cenvat credit available. It is clear under rule 6(4) of Cenvat Credit Rules.
Infact it is allowed only for capital Goods. In case of inputs, SSI exempted unit cannot even avail cenvat credit.
CA Rashmi
(final cleared)
(680 Points)
Replied 02 August 2009
| Originally posted by :P.Bashista | ||
| " | It basically means that when it (the SSI Exempted Unit) is buying a capital good the cenvat credit can be “availed” and can be kept in the cenvat credit account but he cannot use (i.e. utilize to pay any duty) with that cenvat credit available. It is clear under rule 6(4) of Cenvat Credit Rules. Infact it is allowed only for capital Goods. In case of inputs, SSI exempted unit cannot even avail cenvat credit. |
" |
right...
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