Availment of Cenvat Credit

[meil megha]

Dear sir,

As per Notification No.21/2014CE (N.T) Dt.11/07/2014 following provision shall be inserted with effect from 1st day of September 2014 "provided also that manufacturer or the provider of output service shall not take Cenvat Credit after six months of the documents specified in sub rule (1) of rule 9"

As my opinion all notifications with effect from prospectively

My query :- Can we take Cenvat Credit prior 1st september 2014 document ( for example for the month of May 2014 document) now we wanted to take credit for the month of January 2015. Please advise us

[Mahir S]

The cenvat credit for the month of May 2014 cannot be now taken in January 2015.

However, as on today i.e. 17.01.2015, you can take cenvat credit on invoices issued on and after 18.07.2014

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion this notification will have prospective effect.

[Rajagopalan Ranganathan]

Sir/Madam,

Proviso to sub-rule (1) of rule 4 of CENVAT Credit Rules, 2004 as inserted by Notification No. 21/2014- CE (NT) dated 11.07.2014 stipulates that " “Provided also that the manufacturer or the provider of output service shall not take CENVAT credit after six months of the date of issue of any of the documents specified in sub- rule (1) of rule 9.”

Further the Notification lay down that the proviso shall be inserted with effect from first day of September 2014.

In my view since the proviso says that the manufacturer or the provider of output service shall not take CENVAT credit after six months of the date of issue of any of the documents specified in sub- rule (1) of rule 9, even if the documents specified in sub-rule (1) rule 9 had been issued prior to 01.09.2014 and the credit is taken on after 01.09.2014 then the manufacturer or the provider of output service shall not take CENVAT credit after six months of the date of issue of the documents specified in sub- rule (1) of rule 9. The proviso do not say that credit cannot be taken after six month from the date of issue of the specified documents which are issued on or after 01.09.2014. Therefore even in respect of the documents dated prior to 01.09.2014 on the date of taking credit they should be within six month from their date of issue.

 

AI Summary

Cenvat credit time bar: six month limit from document issue applies to credits taken after the amendment's effective date.
A proviso inserted by Notification No. 21/2014 imposes that a manufacturer or provider of output service shall not take CENVAT credit after six months from the date of issue of any of the documents specified in the relevant rule; where credit is taken after the notification's effective date, the document relied upon must, at the time of taking credit, be within six months of its issue, thereby barring older documents from being claimed post amendment.