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

CENVAT credit on stock: eligibility hinges on documentary proof of duty paid, but pre-registration claims face practical limits.
An unregistered trader who obtains excise registration may claim CENVAT credit on existing stock only if he holds documentary proof that duty was paid, notably invoices showing receipt from the manufacturer, importer, or first-stage dealer. Practical limits exist: availing or passing on credit for invoices dated before registration is disputed, entries in the RG register for pre-registration periods are problematic, and any one-time historical concessions are subject to case-law and factual scrutiny.