Cenvat Credit Rule

[Rohitash Gupta]

Whether I can Take cenvat in case I have partially paid for the fixed asset i.e I have paid ₹ 30Lacs against invoice of ₹ 1 crore and ₹ 70 Lacs has been write off in the books of A/c's after 2 fy year.Whther cenvat credit will be allowed on full amt or partial amt.

[So B]

In such case cenvat credit cannot be taken on 70 lacs and if has been already taken then such credit should be reversed.

[KASTURI SETHI]

I agree with Sh.Bhansali Ji.

[CSSANJAY MALHOTRA]

100% CENVAT Credit is admissible as the asset is not written off.

You have strong case to represent as courts have held that Credit is admissible even if the part amount is paid.

Furthermore there is no criteria for reversal of credit in CENVAT regime for goods if the amount is not paid. The same criteria is for services.

[Himansu Sekhar]

As per rule 3(5B) of CCR , if the capital goods are partially written off in the books of accounts, then credit is to be reversed proportionately.

AI Summary

Debate on CENVAT credit eligibility for partially paid fixed assets; Rule 3(5B) suggests proportionate reversal. A query was raised regarding the eligibility of CENVAT credit when a fixed asset is partially paid for, with 30 lakhs paid against an invoice of 1 crore, and 70 lakhs written off in the accounts after two financial years. One response stated that CENVAT credit cannot be taken on the 70 lakhs and should be reversed if already claimed. Another agreed with this view, while a third argued that 100% CENVAT credit is admissible, citing court rulings and the absence of reversal criteria for goods. A fourth response referenced Rule 3(5B) of the CCR, suggesting credit should be reversed proportionately.