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Availment of cenvat credit

sanjeev kumar (112 Points)

10 May 2016

whether credit can be available on shortage of finished products?if s can we use tax paid on capital goods?

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8 Replies

pintu ( Executive) (174 Points)
Replied 11 May 2016

your answer is not clear

pintu ( Executive) (174 Points)
Replied 11 May 2016

questions is not clear

Ankush (Student) (1309 Points)
Replied 11 May 2016

CENVAT credit is not available with respect to shortage of goods as they are not part of final product.

sanjeev kumar (112 Points)
Replied 12 May 2016

what i mean to ask is that if the production(finished stock) as per our books is morethan the phyisical stock.i.e as per books say 1000 tonnes were produced.only 750 tonnes are sold out and the balance is 250 tonnes whereas the physical stock showes as 245 tonnes(.i.e, only 995 is the production as per physical verification)

the inputs used for the production of 1000 tonnes are available for the credit!

excise duty is levied at the time of manufacture itself. so duty will be levied on 1000 tonnes.while paying the duty whether credit of inputs on such shortage stock is avilable or not ?

thank u in advance!!!!!

Niraj Kumar Sinha (Sr. Officer, SPSIL) (648 Points)
Replied 12 May 2016

If input is spoil after issue for production, then no cenvat credit is required to reverse, since it is understand as a production loss.

If input is spoil due to mis-storage or mis management before issue for production, then cenvat credit will be reversed.

sanjeev kumar (112 Points)
Replied 12 May 2016

AM ASKING ABOUT FINISHED GOOD!.I MEAN INPUTS ARE USED PROPERLY FOR THE FINISHED PRODUCTS,THE CREDIT OF INPUTS WHICH ARE USED FOR THAT SHORTAGED FINISHED GOODS ARE AVAILABLE FOR CREDIT TO ADJUST DUTY ON SUCH SHORTAGE

Sunil (Job) (21 Points)
Replied 16 July 2016

Sir, I have one doubt .

1. is all any machinery or goods falling under chapter heading 82 can be considered as capital goods ??

2.for availing Cenvat credit time limit is one year with effect from March ,2015 ..if my input invoice is issued in June ,2014 .is one year eligibility of taking Cenvat credit applicable or only invoice issued from March ,2015 eligible for year Cenvat credit ??