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Excess Availment of CENVAT Credit
Hi to all,
my query is as follows,
A has taken CENVAT credit of Rs.10000(Based on Excise Invoice) during 2007. However he has paid only Rs.6000/- to his supplier. Hence there is an excess availment of credit to the extent of Rs.4000/-.(As per Excise Invoice ED Is Rs.10000/-)
What i feel is that Rs.4000/- must be paid to the supplier. If this is done, there would be no excess availment
Replies (1)
In case of Excise invoice if the purchaser has not paid even a single penny to the seller, once a excise invoice is issued the purchaser is eligible for the cenvat credit. So whether the seller has received only Rs. 6000/- or Rs. 10000/- is irrelavent.
But in case of Service tax the credit can be availed only in reciept of the payment.
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