Time limit for availing cenvat credit

[chaganti srinivas]

What exactly the time limit for taking the CENVAT credit on inputs / capital goods, any specific notification or circular ?.

[SPIROTECHHEATEXCHANGERS PVTLTD]

no as such limit not given in credit rule but normally within one year company taken credit another side it may limit 5 year because excise rerord valid for 5 year.

[rajkumar shukla]

Rules donot prescribe any timelimit for taking credit.however some benches have ruled that it should be taken within a reasonable timelimit.what would be reasonable has not been defined.

cenvat credit is to be taken on inputs/capital goods at the time when they are actually bring to the premises of factory.

[Mukesh Kumar]

The claim of cenvat credit is linked with the refund claim under section 11B of the Central Excise Act, 1944. Earlier the period of limitation was six months therefore, courts have allowed credit within the period of 6 months. Now the period of claiming refund is one year, you can claim the credit accordingly within one year on Inputs. However, in case of capital goods, the period of claiming cenvat credit may be more than one year but various other aspects are required to be looked into such is whether you have claimed depreciation or whether you were claiming exemption at the time of receipt of capital goods etc. etc.

CENVAT credit is required to be taken immediately on receipt of inputs in the factory. This, however, does not mean, nor is it even intended that if the manufacturer does not take credit as soon as the inputs are received in the factory, he would be denied the benefit of CENVAT credit such interpretation is not tenable. In respect of capital goods, which are included in the project import, the CENVAT credit shall be admissible only to the extent of an amount not exceeding 50% of the Additional Duty of Customs paid on such capital goods. However, on the other materials, which are not in the nature of capital goods, the CENVAT credit of the Additional Duty paid shall be allowed to the full extent. Pradeep Khatri, Consultant-Indirect Taxation, [email protected]

AI Summary

CENVAT credit timing: absence of statutory time limit, credit expected within reasonable time and refund period.
No statutory time limit is prescribed for taking CENVAT credit; claims should be made within a reasonable time and are influenced by refund limitation periods. Inputs credit is taken on receipt at factory premises but delay does not automatically bar claim; capital goods present additional complexities including interaction with depreciation, exemptions, and limits on credit for Additional Duty of Customs.