Credit available after 2 years

[madhavvan n]

one company has set up a project for manufacture of automobiles it has imported various capital goods / spares can it avail the CVD and Edn Cess and SHE cess and addnl duty of customs for capital goods and inputs what are the other credits it can avail if it makes entry in rg 23 is it enough and can it utilise credit after 2 years.

[Rama Krishana]

I think your concern is for gestation period. There is a gap of almost 2 years from the date of import and commencement of manufacturing activities. In such a situation, there is no denial of credit of duties paid on import of capital goods and inputs. But in order to operate smoothly and avoid future harassment, you should obtain registration number and file nil return after showing the details of credit.

AI Summary

Input duty credit available despite delayed commencement; obtain registration and file returns to secure and utilise the credit. Credit of customs duties on imported capital goods and inputs, including CVD, education cess, SHE cess and additional customs duty, is available despite an approximate two year gap before manufacture. To secure and utilise such credit the taxpayer should obtain registration and disclose the credits by filing returns (including nil returns where appropriate) showing the details, rather than relying solely on entry in a register.