Sir , can we take cenvat credit of 2008 year invoice in 2014 year in the month of August.

[Guest]

Sir ,

can we take cenvat credit of 2008 year invoice in 2014 year in the month of August.

regards,

Pawan

[YAGAY andSUN]

Dear Pawan,

It will depend on the accounting treatment provided to the particular invoice in 2008. If you had accounted it for with gross value, then, you cannot avail the CENVAT credit, as you might have availed the benefits under Income Tax Act and if you had accounted it for, with net off Excise Duty amount, then, after following the procedure/provisions as mentioned in the CENVAT credit Rules, 2004, you may avail the CENVAT credit.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Guest]

Thanks for your valuable suggestion,

Is there any notification where it is reflecting that 5 or 6 years bills can take for cenvat credit.

regards,

Pawan

[YAGAY andSUN]

Dear Pawan,

No, there is no such notification in this regard. But there are certain judgments which states immediate means not immediately. CENVAT credit can be availed reasonable time. Now, what is reasonable time? There is no clarification but generally 1 -2 years deemed reasonable time.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

Yes, there is no such notification.

However, the limitation period prescribed under the central excise law is 5 years and based on it, i feel it shall not be advisable to avail credit for any period above 5 years, though as advised above 1-2 years is a reasonable time period.

AI Summary

CENVAT credit depends on invoice accounting treatment and adherence to procedural rules; avoid claims beyond limitation. CENVAT credit availability depends on the invoice accounting treatment and compliance with CENVAT Credit Rules; if recorded gross with income tax benefit, credit is barred, whereas net of duty accounting may permit credit after following procedural rules. Judicial views treat 'immediate' as allowing reasonable time (commonly one to two years), but the statutory limitation period under central excise law serves as a practical outer bound, making claims beyond it inadvisable.