Utilise Vs Avail

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Tahseen Tabassum

CA-FINAL

546 Points Posted on 01 August 2009

What is the difference between "utilise" and "avail"? As used in the following paragraph:

In respect of Cenvat credit of capital goods, he cannot utilise Cenvat credit on capital goods if it is availing SSI exemption. However,it can avail Cenvat credit on capital goods even when it is availilng exemption.

Replies (4)

CA Manish K Dhoot

CA B. Com NCFM CPCM

2106 Points Posted on 02 August 2009

utilise means to take the benefit of cenvat credit and avail means to pass an entry for cenvat credit.

P.Bashista

Advocate

378 Points Posted on 02 August 2009

It basically means that when it (the SSI Exempted Unit) is buying a capital good the cenvat credit can be “availed” and can be kept in the cenvat credit account but he cannot use (i.e. utilize to pay any duty) with that cenvat credit available. It is clear under rule 6(4) of Cenvat Credit Rules.

Infact it is allowed only for capital Goods. In case of inputs, SSI exempted unit cannot even avail cenvat credit.

Tahseen Tabassum

CA-FINAL

546 Points Posted on 02 August 2009

Ok !! Thank You

CA Rashmi

final cleared

653 Points Posted on 02 August 2009

Originally posted by :P.Bashista
"	It basically means that when it (the SSI Exempted Unit) is buying a capital good the cenvat credit can be “availed” and can be kept in the cenvat credit account but he cannot use (i.e. utilize to pay any duty) with that cenvat credit available. It is clear under rule 6(4) of Cenvat Credit Rules. Infact it is allowed only for capital Goods. In case of inputs, SSI exempted unit cannot even avail cenvat credit.	"

right...