Cenvat Credit on inputs and Capital Goods!!

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Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2010 Suppose if a manufacturing company has 1)Cenvat Credit available on inputs and Capital goods for the month of March 2010 in excess of the Excise Duty payable for the March 2010 means Can we use that excess Cenvat Credit available for the month of April 2010 also?
2) Suppose if the same situvation arises on any other month ( say June 2010) can we adjust it with july 2010 excise duty liability also?

Thanks for all the experts.

With Thanks and Pranams

CA Sanat Pyne

CA Sanat Pyne (Expert)

01 July 2010 YOU CAN USE CENVAT CREDIT ON INPUT IN THE SAME MONTH OR LATER ON. BUT IN CASE OF CENVAT ON CAPITAL GOODS, 50% YOU CAN USE IN THE SAME YEAR AND BALANCE IN THE SUBSEQUENT YEAR.

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2010 Dear Sanat ji Please see in this question the financial year itself changes (i.e. Cenvat Credit availablity is on f.y. 2009-10 but Cenvat Credit availed can be on f.y.2010-11) is it possible?
Can u quote Cenvat Rules or anyother section of Central Excise Act.
Thanks for solving the query!!

CA Sanat Pyne

CA Sanat Pyne (Expert)

02 July 2010 If you want rules & act just ask for that.
Why r u asking by giving example?
In your example for march you can use it in the month of april, but for june cenvat on capital goods can not be taken in the month of july.

Ajay Raghatate

Ajay Raghatate (Expert)

02 July 2010 Plz understand Basic concept,

Suppose Your Duty liability is Rs. 1000
& You have availed the Credit twds
Input 800
CG 200
S Tax 300
Total Cenvat Cr - 1300,
So after Cenvat Utilisation, your bal.will 300., which will be the Op Bal. of next month of cenvat credit,

If Your duty liability is Rs. 1500.00 then you have to paid balance Rs. 200 from PLA.

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