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

Cenvat credit: Partial write off of capital goods triggers proportionate reversal of credit under applicable rules. Where capital goods are partially written off in the books, the credit attributable to the written off portion must be reversed proportionately under the Cenvat regime; although some contend full credit remains admissible if the asset is not derecognised, a subsequent partial write off triggers a proportionate reversal obligation.