Switching from exemption notication to normal practice

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This query is : Resolved

chetan (Querist)

31 August 2015 In a year, suppose we are availing benefit of exemption notification No. 01/2011 CE dated 01.03.2011 where we are not suppose to take Cenvat credit. We followed this practice till 30th Sep. but from 01st Oct., we want to switch our practice to normal, where we will take benefit of Cenvat credit.
So my query is, is there any problem in changing the policy in mid of the year or once the benefit of exemption notification is availed then we have to follow it for full year ?

Arun Kumar Singh

Arun Kumar Singh (Expert)

31 August 2015 You should start the taking cenvat credit from the next financial year. With the cenvat credit facility you need to pay excise duty @ of 6%.

chetan

chetan (Querist)

31 August 2015 Thank You sir.

But is there any case law to support the above mentioned query or either mentioned in Excise Act that we cannot switch in between year ?

It will be helpful if you provide any legal case where such switching is not acceptable.

Arun Kumar Singh

Arun Kumar Singh (Expert)

31 August 2015 Dear Chetan,
Sorry for wrong advise. you can decide to start availing and utilising cenvat credit on input during the middle of the year.

ajay taneja

ajay taneja (Expert)

02 September 2015 you can switch during the year at any time and you can take cenvat credit on the stocks, which are lying with you at the time of switch over from notification no. 01/2011.

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