RULE 11(2) OF CCR 2004.

[VINOD KUMAR]

GOOD MORNING DEAR EXPERTS. EXTRACTS from rule 11(2) of CCR 2004.' after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining shall lapse and shall not be allowed to be utilized for payment of duty on any excisable goods, whether cleared for home consumption or for export.'Sir, what is meant by this portion (1) whether the balance cenvat will totally end or (2) it will lying unutilized and will be utilized only after crossing 1.5 crores. Please reply. Thanks and regards.

[Rajesh Nathoo]

Daer Dipak ,

Balance Credit if any left will lapse , it cannot be utilized for discharging duty liability when u cross 1.5 Cr. turnover , however when u coss 1.5 Cr turnover , u can take the credit of input raw materials in stock or credit of inputs in finished goods or credit of inputs in WIP.

AI Summary

Cenvat credit lapse: remaining balance is extinguished; subsequent credit limited to inputs in stock or goods in process. After the prescribed deduction from a taxpayer's cenvat balance, any remaining balance lapses and cannot be utilised for payment of duty on excisable goods. If the taxpayer later meets the turnover threshold for cenvat entitlement, credit may be newly taken only for inputs in stock, inputs in finished goods, or inputs in work-in-progress; the previously lapsed balance remains unavailable.