Procedure of recredit of reversed cenvat

[pardeep bisht]

we have taken and utilised the cenvat credit on the invoices bearing wrong address and ECC No. same bearing the address of our second unit but Purchase order was made in our unit ,the material is received in our unit and payment made by us and the same is used in exciseable goods and cleared on the payment of duty , During the audit of our unit we have reversed the same along with interest on objection of audit party . In this regard please suggest . 1. We have received certificate from the end of supplier regaring the their clearicals error and rectify the same invoices duty signed and stamped by the party 2. What will be the procedure to take the re credit of the reversed cenvat during audit Please also provide any case law \judgement, circular regarding said issue 2.

[Surender Gupta]

There is no circular or clarification addressing the issue specifically as related to your query. However, it appears that you have reversed the credit which was availed on wrong document. But, since the document has been correct and certificte has been issued by the supplier in this regard, you can avail the cenvat credit on valid document as fresh credit. This can not be treated as re-availment of credit.

[pardeep bisht]

Thanks for your reply . My question is we have reversed that amount on objection of Excise audit team , if we take the said credit as you suggested , is there any posiblity of show cause notice or objection or penality from the end of department If we take the said credit,requier to intimate the excise deptt.or not .

[Mukesh Kumar]

It is previlage on the part of department that to put an assessee even if genuine one in a embrassing sitation. Since you are not doing anyting wrong, you are taking credit as per the provisions of rule, I thing should not worry about the future action of the department.

AI Summary

Cenvat credit re availment permitted as fresh credit where supplier corrects invoices; retain documents to mitigate challenges. Where Cenvat credit was reversed after audit because invoices bore incorrect address/ECC, but the supplier issues corrected invoices and a rectifying certificate and the goods were received, paid for and used in dutiable manufacture, the credit can be availed anew as fresh Cenvat credit rather than treated as reinstatement; retaining corrected documents and transaction records is essential to support the fresh claim and to address any departmental queries.