CREDIT OF SAD IN RG 23 A PART - II C

[SHARMA NARAYAN]

Dear All

we received the material in varioys ch heading that is not capitalitem but we are capitalise the said material because of highvalue there is basic duty and SAD on invoice how can i take cenvat credit i am doing as per below detail

sir i am taking 50 % of basic Duty in current year and rest 50 % next year and Sad i am taking 100 % credit in current year is thic correct or not pls reply

AI Summary

Cenvat credit eligibility for SAD: accounting capitalization alone does not establish capital goods status; statutory definition governs.
Eligibility to claim Cenvat Credit depends on the statutory classification of goods rather than accounting capitalization; goods not meeting the definition of Capital Goods cannot be converted into capital goods for credit simply by capitalising them. For imported and indigenously procured items the treatment of duty components differs and claiming credit based solely on accounting practice may invite future denial.