cenvat credit

[ANIL KUMAR]

My factory is situated in Himachal Pradesh under exemption of cental excise duty.Presently exemption period is expired on 30.09.14. onwards from 01.10.14 excise duty is levied on goods manufacturedand cleared.As on 01.10.14 stock lying with us ( R.Mand F.G)MAY BE TAKE CREDIT ON BOTH R.Mand F.G LYING WITH US.WE HAVE ALREADY INTIMATED EXCISE DEPT. REGARDIG THIS.PLEASE CLEARIFY

[Mahir S]

Cenvat credit on raw materials, work in process and finished goods may be availed, subject to prior intimation to the department.

It is advisable to get a certificate from a Cost accountant regarding the input utilized therein as well as the Value taken into consideration for purpose of calculation of excise duty credit thereon.

You may contact your jurisdictional Range officer for necessary guidance in the matter.

[Rajesh Nathoo]

Dear Anil ,

As per Sub Rule 2 of Rule 3 of Cenvat Credit Rules,2004, u can take credit of inputs lying in stock or in WIP or in Finished Goods . You cannot take credit of all . You work out work out whichever was highest on 1.10.2014 and take the credit of same .

AI Summary

Factory Begins Incurring Excise Duty; Cenvat Credit Available for Stock and Goods with Notification and Certification A factory in Himachal Pradesh, previously exempt from central excise duty, began incurring excise duty from October 1, 2014. The owner inquired about availing Cenvat credit for raw materials, work in process, and finished goods as of that date. It was advised that credit could be claimed on these items with prior notification to the excise department. A certificate from a cost accountant and guidance from the jurisdictional Range officer were recommended. Additionally, it was clarified that under the Cenvat Credit Rules, credit can be taken on inputs in stock, work in process, or finished goods, but not all simultaneously.