I wanted to know what is the time period after receipt of raw material / invoice date to the premises of manufacturer for availling a CENVAT credit.
Is their any notification available in central, excise rule
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Tiem period for availling cenvat
Replies (4)
immediately after the receipt it should be accounted, however there is no time limit prescribed, but in no case it should exceed the financial year ending, as after finalization of accounts, such credit can not be taken of previous year.
As per law credit should be taken "immediately". There is definition for "Immediate". There is a judgement from Karnataka court that "Immediate" means 6 months.
Here "immediately" means it should be taken at the earliest option available.
No time limit is precribed under the law for taking Cenvet credit.In rule 4 of the cenvet credit rule the word used is 'immediately'.The department has already clarified that immediately does not mean that if the same is not taken as soon as input is received in the factory,the benefit of credit is denied [chapter 5 para 3.5 CBEC's supplementary instruction].There are numerous judicial pronouncement in this regard which says that in Law no time limit is prescribed for taking cenvet Credit.
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