Cenvat credit - Prior to registration

[Ram Babu]

Sir: Pl clear that can we get the cenvat credit on bills which are prior to the Registration? we have registered with central excise on 28.09.2006 but we have procured the material from 01.09.2006. On these purchase bills suppliers marked for our ECC no. Applier For please clarify can we get Cenvat credit on these bills or not

[Madhukar N Hiregange]

If the inputs are in stock you can certainly get the credit for the past period. If you have used the inputs for [providing taxable servcies in the past that also can be availed. However periods of over 1 year may result in demands from the department.

[Madhukar N Hiregange]

Yes you can get the credit provided that the inputs are used for providing the taxable servcies and you do not clai any deduction for the value of goods sold.

AI Summary

Cenvat credit eligibility on pre-registration purchases permissible if inputs are in stock and used for taxable services.
Cenvat credit on inputs bought before registration is allowable if the inputs are in stock at registration and are used to provide taxable services; claimants must not claim deductions for value of goods sold, and claims for periods beyond one year prior to registration risk departmental demands.