CENVAT credit year end treatment risks double benefit when unutilized credits are expensed yet retained for future excise use. The circular warns that unutilized CENVAT credit debited as expenditure in Profit and Loss accounts, yet retained in CENVAT accounts for later use, can create unintended double benefits under Central Excise and Income Tax laws. It notes this risk arises particularly with inverted duty structures and instructs field formations to inform Income Tax authorities where such credits have not been written off and for audit parties to monitor year end CENVAT balances.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
CENVAT credit year end treatment risks double benefit when unutilized credits are expensed yet retained for future excise use.
The circular warns that unutilized CENVAT credit debited as expenditure in Profit and Loss accounts, yet retained in CENVAT accounts for later use, can create unintended double benefits under Central Excise and Income Tax laws. It notes this risk arises particularly with inverted duty structures and instructs field formations to inform Income Tax authorities where such credits have not been written off and for audit parties to monitor year end CENVAT balances.
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