Treatment of cenvat balance

This query is : Resolved

CA Sanjay Baheti (Querist)
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20 August 2012 Dear Members,

One of my client being an Individual engaged in manufacturing activities since 2008.Now he covered under Excise law as SSI limit was going to be crossed in March,2012.So accordingly he applied for Excise registrarion & obtained RC on 07.03.2012.The concern also comes under Tax Audit as per I.T.Act relevant to F.Y.2011-12.Subsquently he filed ER-3 for period 01.04.2012 to 30.06.2012 after considering Cenvat portion on Raw Materials of Rs.59648/- relevant to Purchases for the F.Y. 2011-12 & Stock As on 31.03.2012.

Now query is as :-

i) whether can he claim such Cenvat related to purchases F.Y.2011-12 even though RC Dt.07.03.2012 i.e. prior to Registration with Deptt.

ii) If yes the How to show in Balance Sheet as on 31.03.2012 as so far ER-3 rerun for April.2012 to June,2012 is not showing any opening balance as to Cenvat Balance along with JV entry in Books relevant to F.Y.2011-12.

please resolve me query at earliest as i am going to file ITR along with Tax Audit report.

U S Sharma

U S Sharma (Expert)
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20 August 2012 CENVAT credit is available only from the date of commencement of duty payment, good purchased prior to that date is not eligible

in current year if you have not availed SSI benefit, and availed cenvat credit, then you have to pay duty from zero level.

CA Sanjay Baheti

CA Sanjay Baheti (Querist)
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28 August 2012 Dear Sharma ji,

You have replied my query as to Cenvat Credit on 20/08/2012,Thanks for the same.However I want to confirm that prior to RC of Dated 07.03.2012 can we take Cenvat Credit on purchases related to F.Y.2012-12 out of which Certain stock of Raw Material as on 31.03.2012 has shown in Books. Accordingly we have to shown that Cenvat Cerdit as receivable in Balance Sheet as on 31.03.2012 & to the same extent we have to Show Raw material Stock as on 31.03.2012 Net of Cenvet Credit.

Is correct or not from disclosure point of view of Balance Sheet.
Please confirm