cenvat credit eligible-reg

[Ramakrishnan Seshadri]

Dear Sir,

Whether the cenvat credit is eligible on the invoices received before the excise registration is obtained. can we claim this cenvat credit .

Please clarify.

Thanks & Regards,

S.Ramakrishnan

[KASTURI SETHI]

Yes you can take. It is understood that you can utilize only after registration i.e. while paying duty. Such situation arises for an SSI unit when the manufacturer is about to cross 1.50 crore.

[KASTURI SETHI]

There are so many judgements on this issue.

[Mahir S]

You can avail Cenvat Credit of Central Excise Duty which involved on purchase of Raw Material as well as capital goods, which you purchase before Central Excise Registration, as already explained above.

You take online registration and thereafter submit a sheet to the Division/Range office enclosing details of raw material and capital goods lying at your premises at time of taking registration.

[KASTURI SETHI]

Sh.Mahir S.

Thanks for completing my reply, Sir.

[Mahir S]

My pleasure , Sir.

[Varun Arora]

Dear Mahir Sir,

As explained above by yourself regarding taking of online registeration and thereafter submitting the sheet to Range enclosing details of raw material and capital goods lying at our premises at the time of taking registeration, I have a query regarding this Actually i took online registeration and Inspector visited the Factory and after some time or completing the legal formalities you can say department issued RC and then As per the directions of Superintendent We file a application regarding Stock statement or Stock lying in our premises to AC/DC and AC/DC wrote a letter to suprintendent to verify the same stock whether this stock is lying in the same premises or not the Suprintendent and inspector visited the factory and then they allowed the same.

I want to know that whether this long route we have to follow or is there any short procedure for taking the credit so that we can avoid unneccassary involvement of officers in our premises because as you know officers's visit creates difficulties As you mentioned that only enclosing stock statement while submitting the documents of registeration is enough.

Thank you in advance.

[KASTURI SETHI]

Sh.Varun Arora Ji,

As per Chapter 5 (Cenvat Credit)(Para No.3.10) of CBEC's Excise Manual of Supplementary Instructions, 2005, jurisdictional Range Officer and Inspector can visit the premises of a manufacturer for verification with written permission from the Assistant Commissioner. Note the words, "wherever needed". mentioned in the instructions. In case the Range Officer has any doubt he can visit the premises in such case.However, the basic responsibility is upon the manufacturer to prove that inputs or capital goods were purchased and were used for the intended purpose.

[Mahir S]

Yes sir, you are right.

Officers have discretionary powers to verify the inputs and capital goods on which cenvat credit is availed at time of registration.

AI Summary

Cenvat credit eligibility: pre-registration invoices may be credited after registration, subject to stock submission and verification.
Cenvat credit on inputs and capital goods invoiced before excise registration may be claimed and utilized after registration; the manufacturer must take online registration and submit a stock statement of inputs and capital goods present at the time of registration. Departmental officers may, with written authorization, verify the stocks where doubts exist, and the manufacturer bears the responsibility to prove purchase and intended use.