CENVAT CREDIT INPUT - REG

[katkoori baburao]

Sir,

With respect to above subject, kindly clarify the following point:

The ST 3 returns filled without considering input credit, but payment made by taking input. Can now, the audit team will consider it or not. Since it pertains to FY 2012-13, 2013-14, 2014-15, 2015-16. As a result the turnover is mismatched w.r.t income tax filed and ST returns.

Kindly confirm.

Thank you.

[KASTURI SETHI]

It is a procedure lapse. For such lapse penalty under Section 76 or Section 77 is imposable. If records are fool proof, penalty is ignorable by audit or any wing of the department. Your books of accounts are specified records and can save you from penalty, if correctly maintained by showing all entries of credit.

[Ganeshan Kalyani]

Proper reconciliation of return with the books of accounts is required to be prepared to substantiate procedural lapse.

AI Summary

Cenvat credit procedural lapse may attract penalty, but complete books and reconciliation can avert penalty on audit.
Cenvat credit omitted from ST 3 returns is a procedural lapse potentially attracting penalty; complete and verifiable books of account and specified records can prevent or negate penalty exposure. A proper reconciliation between returns and the books of account, supported by documentary evidence, is required to substantiate the lapse and to demonstrate entitlement to input credit for audit purposes.