Timebar for availing Cenvat Credit on Capital goods

As per Rule4(2), the cenvat credit in respect of capital goods shall be taken for an amount not exceeding 50% in the same financial year and the balance credit can be taken in any subsequent financial year. Sumit

Provided, the capital goods are still in possession in such subsequent year (except in case of components, spares, accessories, refractory and refractories materials, moulds and dies).

There is no time bar in Cenvat Credit Rules. Also in one of the judgments (SAIL India) it was held that as there is no time limit cenvat can be availed any time. But for practical reason, in indutry, credit is availed in maximum 1 yr.

no time bar for using cenvat credit on capital goods. If assets is in possession. Only 50% in first year.

Originally posted by :Sumit
"	As per Rule4(2), the cenvat credit in respect of capital goods shall be taken for an amount not exceeding 50% in the same financial year and the balance credit can be taken in any subsequent financial year. Sumit	"

 

Is there any time limit for availing credit on inputs, please mail to my id please since one input credit in feb was missed out

Rule permits credit immediately on receipt of the inputs in the factory. No time limit is prescribed within which the credit must be taken. However, it is a common principle that where no time limit has been prescribed for doing a thing, it must be performed within reasonable time. One year period has been considered (by Tribunals) reasonable for taking credits on the inputs. This is based on the fact that the time limit for issuing a notice is also one year.