Cenvat credit more than payment amt

This query is : Resolved

Kamlesh Chokhani (Querist)
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09 July 2010 Dear All

AS per our PO terms and condition any statutory variation after contractutal delivery date ( CDD) is to be borne by seller

The rate of basic excise duty has been changed from 8% to 10% wef 26.02.10.

As per PO terms , in cases where CDD was on or prior to 26.02.10 but material dispatched after that that ( eg in March). Seller is giving us invoice of 10% excise duty but we are paying him only 8% as per PO terms

Query is whether we can take the credit of whole 10% in such cases or not or it will be restricted to payment amount of 8%.

Please advise with relevenat laws, if any..

Thanks and Regards

Kamlesh Chokhani

Shyam Lal Naik

Shyam Lal Naik (Expert)
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10 July 2010 In case of inputs and capital goods, there is no requirement that the tax must be paid to be eligible to take credit.

Once the inputs/capital goods are received at your factory, supported by the invoice, you are eligible, not withstanding whether payment is made in full subsequently.

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