Order of claiming CENVAT credit

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This query is : Resolved

CA Ysil Karunai (Querist)

15 December 2009 Dear Sir,
Consider this example": for the month of april 09:
1. Input on Capital Goods Rs. 500000(Assume 50% already utilised)
2. Input on purchase, duty paid Rs. 50000
3. Input on service tax, tax paid Rs. 15000.
now,
Duty payable for the month of april for removal Rs. 325000
Calculation:
Total duty paid Rs. 325000
Less:
CENVAT on
- Purhcase Rs. 50000
- CG Rs. 275000
Paid through PLA Nil
Query:
1. From the above calculation, whether CENVAT credit can be claim without claiming of service tax input (assume service tax paid for input services is eligible for CENVAT credit). if yes, Input tax paid on service tax can be avilabe for CENVAT credit for subsequent month or period?
2. is there any priority or order for caliming CENVAT credit on Duty payable goods?

SANJAY JAIN

SANJAY JAIN (Expert)

15 December 2009 The provisions of CENVAT Credit Rules,2004 are very clear where Assessee is entitled to take credit on inputs and capital goods immediately on receipt in the factory in which no need to wait for actual use in the manufacturing process. While in respect of input services, the situation is little different where the Assessee may take credit only after payment of input service including service tax.

So do not get baffled in finding the order of taking credit as there is no intention of the law makers to set such order.

For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).

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