Is it neceesary to take cenvat credit each and every time

If you have some CENVAT credit available in your books from previous purchases you have made, you can take their credit.

It is not compulsory, if you like your organizations to have more expenses and less profit, then you can preferable go for such an option.

CENVAT credit is just a facility provided to those people who have a vaild Excise Regn. No. & are dealing in its related transactions, its not something hard & fast.

Before total imposition of VAT (which later on took place 2005 onwards) in our country excise payment & the method of taking its credit was known as MODVAT, i.e. Modified Version of VAT.

It is Not mandatory to take credit of Cenvat ,it is to abdudged according to planning.

For Capital Items- This is management Decn.They have forego cenvat if they want higher depreciation due absorption of excise duty element in cost of cap asset.

For Revanue Items-This depends upon tax planning,if you are exporter some time it is better to avail DEPB,Expo Incentives etc then one has to forego Cenvat.

I dont think if somebody is having cenvat credit available then in such a case he will not take the benefit of it......it will be like donating the money