Availing Cenvat credit

[SURYAKANT MITHBAVKAR]

We have cleared machinery on payment of excise duty to display in exhibition on 17/11/2012 under Rule 11 of C.E. under this duty will be payable  before 5th  of next month. i.e. 05/12/12

The exhition period is 21/11/12 to 23/11/12

 After exhibition completed all machinery i returned to our factory premises on 24/11/12.

since machinery is returned  to our factory can i avail the cenvat credit against the same invoice in same month but before making the excise duty payment of that particular invoice which was due on or before 05/12/12

OR

We can make duty payment of that invoice before 30/11/12 and avail cenvat credit in same month.

Pl. advice

[YAGAY and SUN]

You may pay the duty on 24-11-2012 and avail the CENVAT credit. There is no harm in doing so.   Also keep the Department informaed in this regard.

[SURYAKANT MITHBAVKAR]

Today we are in 27th November hence it is not possible to make duty payment on 24/11/12 

can we make payment on 30/11/12 and avail cenvat credit in same month.

[YAGAY and SUN]

Yes you can.

1) if you are paying through PLA,  pay the duty on the date of  clearence, and take the credit when the machinery came back to you

2) if you are discharging the liability on monthly basis through cenvat account, pay the duty on the due date & take credit after that

AI Summary

Cenvat credit can be claimed when exhibition machinery returns after duty payment or upon payment before the due date.
When machinery cleared for exhibition is returned before the excise duty due date, CENVAT credit may be availed in the same month if duty is paid and the machinery is back in charge; if duty is discharged via PLA at clearance, credit may be taken after return, while if liability is discharged monthly through the CENVAT account, duty should be paid by the due date and credit taken thereafter.