Cenvat Credit on Invoices which are more than 6 months

[Bhairob Chandra Bor]

Dear Sir,

We shall be very grateful if you kindly advice us for the following situation:

We have raised supplementary invoice in the last year in October 2013 (retrospective effect may be April-October, 2013 and we have paid interest on excise duty for delayed deposit) to our customer in respect of price increased. Due to some reasons that supplementary invoice was not passed/booked in the their books of accounts. In December, 2014 they want to booked those invoices but they are denying for the payment of excise duty charged by us on the supplementary invoices on the excuse of the changes of cenvat credit time limit . Hope you understand the situation. Kindly advice:

1. Is the amended cenvat credit rules allow to take cenvat credit on the old invoices which are more than 6 months?
2. What will be the treatment if we shall reversed the old supplementary invoices and issue a fresh invoice in the current date to our customer? If we pay the interest on excise duty as per latest applicable rates from the original supplementary invoice date to current date(i.e. Oct'13 to Dec'14 as we have already paid the interest from original invoice date to original supplementary date ) and if it is possible then our customer can avail the cenvat credit in the current date. We are asking this question as we need to any way find a solution and to recover price increase amount along with excise duty and tax which is around ₹ 60 Lacs.

Again we shall be very grateful if you provide a solution in line with the amended cenvat credit rules at the earliest.

Kind Regards,

bcb

[M K]

Please ask your customer a certificate that they have not taken the CENVAT credit due to the eligibility period of six month is over and get back all your invoice copies Original and Duplicate and apply immediately for refund with your A/C at Divisional Office through your consultant. We have the same kind of issue and applied for refund and got it but then there is no time limit.

Please try for your best.

Regards,

M.KANDASAMY

OFFICER-EXCISE

RANBA CASTINGS LIMITED

COIMBATORE-641406.

[Guest]

But this fault is by party so they can't deny

AI Summary

Cenvat credit time limit affects claims on older supplementary invoices; consider refund or reissue with interest and certificate. Where purchasers failed to book retrospective supplementary invoices, eligibility to take Cenvat credit may be barred by the prescribed time limit. Suggested remedial measures are: obtain a purchaser certificate confirming no prior credit claim; collect original and duplicate invoices; apply for refund of excise through divisional office accounting channels; or reverse and reissue invoices dated currently while paying interest from the original invoice date to enable prospective credit, with appropriate documentary evidence.