Cenvat credit issue

[SNEHAL SHAH]

R/sir,

We are Engineering manufacturing company , we have take a permission from Central excise for raw material , Semi-finished goods and finished Goods stores outside factory premises.

Central Excise department impose one condition that U can not take cenvat credit untill all material not received back your Excise registered premises or consumed.

We have SAP System and untill we can not entry in SAP cenvat Accounts department not payment to vender .

So we have one option that we can take cenvat in suspense account ( Cenvat receivable ) and payment to party . If all material received back in our premises or utilise we can JV entry and take cenvat .

In the year end if any balance suspense account balance we can show in balance sheet Asset side ( NOT CENVAT CREDIT AMOUNT ) .

Now my question is that all above transaction is as per excise law or excise permission is ok or not ?

Please guide to us .

With regards,

SNEHAL SHAH

AI Summary

Engineering Firm Seeks Clarity on Cenvat Credit for Offsite Materials; Considers Suspense Account as Asset Under Central Excise An engineering manufacturing company sought guidance on handling Cenvat credit for materials stored outside their factory premises, as per Central Excise conditions. They proposed using a suspense account for Cenvat credit until materials are returned or consumed, and questioned the legality of showing this balance as an asset. A respondent advised that showing the suspense account balance as a current asset might imply availing Cenvat credit, suggesting consultation with the jurisdictional Central Excise Authority for clarification.