Queries on excise

FAQ/Suggestion regarding CENVAT CREDIT

Whether the CENVAT accumulated due to rate difference in excise duty of input and output of one unit of a company can be :- (i) Transfer in another unit of the same company anywhere in India for utilization in payment of excise duty of such another unit or (ii) get refunded from the department. All goods are being sold indigenously.

Whether the balance of unutilized Cenvat in a unit which has closed all its activities can be:- (i) utilized after a long period of three of four years in payment of excise duty of other product by the same unit or (ii) get refunded from the department. All goods are being sold indigenously.

Is there any time limit of taking credit of Cenvat of both excise and service tax?

Whether Cenvat credit can be taken of service tax on bill of architect pertain to the period before taking the registration under central excise act?

Whether Cenvat credit can be taken on the steel used in erection of supports and guards of Rolling mill and in cooling platform?

Now department is imposing penalty on the cenvat credit taken mistakenly even not utilized. This is not fair. A strong recommendation should be given to amend the concerning notification/circular.

1. Excise registration is "unit based", also it the output rate cant not be lower than input rate in present CETA, if it happens than the input credit is barred or restricted. Under both circumstances the excess of credit is going to get lapsed on end of year, except the Quantitiy used in export or export obligations. for transfer of credit, there are certain provisions which relates to physical transfer of inputs / capital goods containing excise content, subject to control of both juridictional assistant commissionors.

2.If the unit get closed and all manufacturing activities seizes, the accumulated credit is lapsed in general , however it can be used to clear the stock in hand only to the extent of stcoks available prior to close of factory.

3. There is no specific time frame, but it should be taken as early as possible, but before the close of financial year.

4. Unless the structues / plates confirm the status of "capital goods" required in relation to produce the finish goods, it cant be availed. its burden of assesee to prove that without these the finish goods cant be generated, then only it can be claimed.

5. You have to reverse the credit wrongly taken 1st , then go to appeal for weiver of penalty / interest, where u can get relief on the merits of your intention, department will insist on evasion, where if u can prove that its mistake - unwillingly done, then it may be admitted.