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Cenvat credit availed but not utilised? is any offence?

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 November 2014 Sir,
We are one the new Chainese company in the business of diesel engines assly / manufacturing which is not commenced the assly of engine/ production,
we registered with C.E. and having two locations,
Purchase input for our one registration because we are doing some job work for gen set engines
and we adopt 4 5(a) procedure also, we availed cenvat credit on inputs which not utilised due some technical/ commercial matters.
Now Central excise range is asking/ objecting orally why company have availed cenvat whereas you are not doing any clearance from the unit.

Is there any offence or provision for the above query.
Pl do the needful

14 November 2014 Hi,
Rule 3. CENVAT credit rule says A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit.
If the credit is eligible then there is no issue for av-ailment.

Try to explain officer.

Revert for more details.



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