TaxTMI 
TaxTMI 
Sir we are manufacturer and regularly import duty free raw material under advance license. At the time of closer of advance license due to non fulfillment of export obligation (short export) we have paid applicable CVD and Addl. Duty as applicable with interest. We have original duty free bill of entry and now GR-7 challan for paid duties. my query is: Can we avail cenvat credit on GR-7 challan as per explanation of rule (b) 9 of CCR 2004.
CENVAT on GR-7 /TR-6 Challan
10 Mar 2014 
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CENVAT credit entitlement requires proof of transfer and use of inputs before credit follows duty payment after export obligation failure.
CENVAT credit on duties paid under GAR-7/TR-6 for failure to fulfil advance licence export obligations is allowed only if the claimant complies with CENVAT rules and can prove that the specific inputs on which duty was paid were transferred to them and used in the manufacture of dutiable goods; mere payment of duty after taking over a factory does not create entitlement where the predecessor had already consumed the inputs. (AI Summary)
CENVAT credit on duties paid under GAR-7/TR-6 for failure to fulfil advance licence export obligations is allowed only if the claimant complies with CENVAT rules and can prove that the specific inputs on which duty was paid were transferred to them and used in the manufacture of dutiable goods; mere payment of duty after taking over a factory does not create entitlement where the predecessor had already consumed the inputs. (AI Summary)