CENVAT Credit on stock

[mk Jain]

Dear Sir,

If any unregistered dealer ( trader) want to take excise registration as on today ( Current scenario).

Is he eligible to take the CENVAT credit on stock lying with him.

Rgds

MJ

[Rajagopalan Ranganathan]

Sir,

The answer is yes provided the unregistered dealer has documentary evidence to prove the duty paid nature of the stocks held at the time of registration.

[Himansu Sekhar]

Yes, if only the invoices are available and the goods are received from manufaturert/importer/first stage dealer

[KASTURI SETHI]

Dear Querist,

If you get yourself registered today i.e.19.5.2017 and you take credit on the invoices issued on 18.5.17 or before that, you are not eligible to take and pass on the credit against those invoices. It is not litigation-free. You are a dealer and not a manufacturer. This practice is allowed in respect of manufacturer. Before 19.5.2017, you were unregistered dealer. RG23 D is still a statutory registered and you can cannot make entry of those invoices pertaining to the period before registration. Can you make entry in RG 23 register in respect of those invoices which were issued before 6 0r 4 months age ? Whether it is 1 day or before rule is same ?

Such like one time credit was allowed in the year 1994/1995 by the Board, that too, in view of so many case laws in favour of assessees.

If someone has escaped the eyes of auditors on such issue, that does not mean it is always right.

[MUKUND THAKKAR]

prefect sirji..

I am 101% agree with your view..

[KASTURI SETHI]

Sh.Mukund Thakkar Ji,

Sir, After a gap of three days, you have responded with your observations and compliments as "101 % agree" and "perfect", it means you have read between the lines. You have studied the issue and reply in depth. Thanks a lot.

AI Summary

Unregistered Dealer Seeks CENVAT Credit on Stock; Experts Stress Need for Compliance with Documentation and Registration Dates. An unregistered dealer inquired about eligibility to claim CENVAT credit on stock upon obtaining excise registration. Respondents generally agreed that the dealer could claim credit if there is documentary evidence of duty paid on the stock. However, one respondent highlighted that credit cannot be claimed on invoices dated before registration, as this practice is not litigation-free for dealers, only for manufacturers. They noted that while such credit was allowed in the past under specific circumstances, it is not typically permissible. Another respondent expressed strong agreement with this viewpoint, emphasizing the importance of compliance with regulations.