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Cenvat Credit

Nirav (Bcom, LLB, CA Final) (107 Points)

02 July 2011

in my company we have purchased one capital goods on 1st Feb 2011 which we paid excise worth3.5 lacs. but during that financial year we forgot to take the credit upto the limit of 50% which is availed under cenvat credit rule.

can anyone help me out that now how can i claim the credit in terms of excise and whether i can claim full 100% excise credit in FY 2011-12

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5 Replies

Mayank Saraogi (Learner) (170 Points)
Replied 02 July 2011

ya surely you can take 100% credit in the FY 2011-12.......i think rule 4(2) does allow that

moreover i ll tell u few other possiblities

FY 10-11 FY11-12 FY12-13

NIL 100% -

NIL 50% 50%

40% 60% -

60% 40% <---------------------------------NOT ALLOWED

PLZ correct me if i m wrong.....

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 02 July 2011

Mr.Mayank is correct. You can take full 100% credit in 2011-12.

Regards

Dayananda

CA AMANPREET SINGH (Chartered Accountant) (284 Points)
Replied 02 July 2011

i agree as Only condition is that maximum credit for year of aquisition is 50%. NO other condition regarding following years.

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 04 July 2011

You can take 100% credit in the next year.Rule 4(2)(a) of the cenvat credit rule dors not say that 50% of the credit has to be takken in the first year itself.Judicial pronouncement also support you,such as Herbicure P .Ltd vs C.C.e 2007(216) E.L.T216.