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

Cenvat credit entitlement for inputs, work in process or finished goods available after exemption, subject to prior intimation. Cenvat credit may be claimed on inputs, work in process and finished goods held when an exemption ceases, provided there is prior intimation to the department and adequate substantiation of inputs consumed and the value taken for credit calculation; obtaining a cost accountant certificate and consulting the jurisdictional range officer are recommended for compliance.