LIMITAION PERIOD OF CENVAT CREDIT ON IMPORTED CAPITAL GOODS

[BALRAJSINGH VIRDI]

Dear Sir

Please help me out to resolve the issue- that i had bought machineries in year 2011 for production in my works, but failed to claim input in same and next year, but 50% claimed in year 2014-15 and balance in 2015-16, will it be allowed or not.

Please suggest

AI Summary

Cenvat credit timing on capital goods allows deferred full claim in subsequent year when initial-year claim was not taken.
Cenvat credit on capital goods can be claimed up to fifty per cent in the year of receipt and the balance in any subsequent financial year; if no credit is taken in the year of receipt the assessee may claim the entire admissible credit in a later year. Administrative guidance and tribunal authority confirm that taking full credit in the year following receipt is consistent with the Cenvat Credit Rules, and a nil claim in the year of receipt does not forfeit the right to claim later.