Clarification regarding goods return cenvat credit rule 16

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jeet

Sr.Excise Executive

31 Points Joined April 2014

I want to get clarification about cenvat credit , in this budget our FM.has amended cenvat credit rules 2004 and fixed time limit for taking cenvat credit up to Six Month from the date of issue of invoice .

in this base let me clear that if i am manufacture and i send material to my branch on dated 01-12-2013 which is situated in mumbai after paying duty and branch sends back some of goods return to me(ho) on dated 01-10-2014 so at that time can i take credit for the same duty paid goods which i receive from branch ....according to this budget ..

Require Clarification on below Issue.

In the regards of above discussed matter the F.M. has amended Cenvat Credit rules 2004 , rule-4 & rule-7 and for brought back duty paid goods in the factory rule-16 of the central excise rule 2002 is available and the same is not amended in this budget so please clarify me six month time limit will also be applicable on goods return cenvat credit ?.

Replies (8)

kumar hattanna

Officer - Excise

525 Points Joined July 2013

Dear Jeet.

No need worry about CENVAT Credit rule amendment, see if you sell goods to your customer 15/7/2014, your customer have time to take credit for six month from the date of invoice. in case your custome or your branch sells the goods to you on 16/7/2014, you have time period of six months to take credit.

For ex. B company your supplier sell goods to you on CENVAT invoice, unfortunately due to some reason you have not accounted the invoice and you have taken credit, one fine day you come to know that the particular bill not accounted and not taken credit, "the final day must be within the six months of time period".

You have to take the CENVAT Credit within the six months of invoice date.

Regards

Kumar

jeet

Sr.Excise Executive

31 Points Joined April 2014

Dear Kumar, Thanks for the rply In case of my branch is returned goods to me through commercial invoice so how can i take credit on commercial Invoice ?

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

In this reagrd you can taken the Entire CENVAT credit on the strenth of Triplicate copy which is issued by you. So that you can take the without dout. In this raged various case law.

Thanking you,

kumar hattanna

Officer - Excise

525 Points Joined July 2013

Dear Harendra Sir

Could you refer any of the case law to refer please. even for me too not aware of this facility in excise. if you specify any case law its helps us lot sir.

Thank you so much for your reply.

Regards

Kumar

jeet

Sr.Excise Executive

31 Points Joined April 2014

Dear Harendra sir, My question is If I dispatched goods to my Branch ago six month from today & my branch will dispatch the same goods on or after 01/09/2014 to me can i eligible for avail cenvat credit after 01/09/2014 ?

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

Plz rectify your date 01/09/2014, Plz

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

In this regard RULE-16, read very carefully,

Credit of duty on goods brought to the factory.

Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit rules, 2002 and utilize this credit according to the said rules.

And CENVAT credit is admissible, which invoices having in your record .i.e. Triplicate copy because Original & Duplicate copy send with materials.

Now CENVAT credit Rule, 2004 is applicable and asked if any case law plz. forward the same. I provided you various case law in this regard.

If you follow the New Rules then mandatory materials received back within six months in the factory premises. Hope you got if not plz forward the same.

Thanking you,