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.

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.