Cenvat credit- event for registration?

EXICSE (Legacy) 493 views 2 replies

Harvinder kumar

Company Secretary

195 Points Posted on 23 January 2014

Dear Friends,

Kindly guide in the following matter related with CENVAT Credit:-

Our Company is a First Stage Dealer and already registered for CENVAT Credit in Utter Pradesh. Now, we want to expand our business activities outside U.P. and considering establishing factory in Karnataka. However, we have not yet applied for registration for availing CENVAT Credit in Karnataka. We are thinking to buy machine from outside of India, which will take around 30 to 45 days to reach in India. If, meanwhile, I apply for the registration for CENVAT Credit at Karnataka, “so will I be able to avail CENVAT Credit before reaching the said machines?”

Registration for CENVAT Credit is required before placing the Order of such Machines?

Kindly answer the aforementioned issues. Your valuable suggestion will be greatly appreciated.

Thanks & Regards,

Harvinder

Replies (2)

karan jit singh

Consultant

1299 Points Posted on 24 January 2014

Originally posted by : Harvinder kumar
	Dear Friends, Kindly guide in the following matter related with CENVAT Credit:- Our Company is a First Stage Dealer and already registered for CENVAT Credit in Utter Pradesh. Now, we want to expand our business activities outside U.P. and considering establishing factory in Karnataka. However, we have not yet applied for registration for availing CENVAT Credit in Karnataka. We are thinking to buy machine from outside of India, which will take around 30 to 45 days to reach in India. If, meanwhile, I apply for the registration for CENVAT Credit at Karnataka, “so will I be able to avail CENVAT Credit before reaching the said machines?” Or Registration for CENVAT Credit is required before placing the Order of such Machines? Kindly answer the aforementioned issues. Your valuable suggestion will be greatly appreciated. Thanks & Regards, Harvinder

Dear Harvinder,

CENVAT CREDIT RULES nowhere states Registeration as a condition for availing credit (Refer J.R.Herbal Care_2010_CESTAT)

But as per Rule 9(1) read with rule 4(1) of CCR,2004 , Cenvat Credit shall be taken on the basis of Manufacturer's Invoice,(In your case Bill of Entry and Certificate issued by custom appraiser where goods have been imported by post(Courier import)) and on receipt of goods in the factory