TaxTMI 
TaxTMI 
Availing of cenvat credit
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....vailing of cenvat credit<br> Query (Issue) Started By: - ASHOK AMIN Dated:- 5-6-2017 Last Reply Date:- 6-6-2017 Central Excise<br>Got 8 Replies<br>Central Excise<br>Dear Experts, We are a manufacturing unit and also have trading unit separately. We imported 10 items, 2 for our manufacturing and 8 for trading unit which we received under one invoice from them and bill of entry. Now my querry is ca....
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....n we avail cenvat credit only on the 2 items which is combined with the trading items, since we are not availing the cenvat credit of the trading items. Is it permissible to take cenvat credit of the 2 items as per law ? What will be its adverse effect if the audit party later on comes to know about it ? Reply By KASTURI SETHI: The Reply: There is no problem in availing credit on two items. No p....
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....roblem can be created by audit when you fulfill all the conditions. What you think is unfulfilled ? Reply By ASHOK AMIN: The Reply: Dear Sir, We are of the view that we wont be able to avail cenvat credit on the two items because there are other 8 items of trading on which we will not avail the credit, and, since the original documents (cenvat copy) will be kept in the manufacturing unit they w....
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....ill ask about the other 8 items of trading which is stored in the trading department. They may further ask how can we avail cenvat credit of the 2 items whereas other 8 items of trading are mentioned in the same bill of entry. Please clarify. Reply By KASTURI SETHI: The Reply: There will be no such problem especially in view of origin document is with you. If 8 items are in one bill of entry, it....
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.... does not debar you to take credit on two items meant for manufacturing unit. Nothing to worry about. Since problem does not exist, so why to ask for clarification or solution ? Reply By Himansu Sha: The Reply: Kasturi sir is correct. There is no problem in taking credit on two items. Moreover these items enter into the manufacturing process Reply By ASHOK AMIN: The Reply: Thanks for the repl....
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....y sir. But, here i would like to say one more thing that all the items are similar and as per my knowledge we cant do trading and manufacturing in the same premises. Here we are having a separate premises but, the products are similar. Hence the doubt arised in my mind. Reply By KASTURI SETHI: The Reply: Yes You cannot do trading of similar goods from manufacturing premises. Bill of entry is add....
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....ressed to your unit and you are to keep original bill of entry in your manufacturing premises and photocopy for other six items in trading premises. Since both are yours, there will be no legal or technical problem. At the time of audit of trading premises you can show your original copy to them. In this regard, the department is liberal provided there must not be evasion knowingly or unknowingly.....
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.... When your stock and record are may and clean and in order. Nothing to worry. Reply By ASHOK AMIN: The Reply: Thank you all for your valuable reply. The explanation sufficed my querry. Thanks to all once again. Reply By MARIAPPAN GOVINDARAJAN: The Reply: It is a good practice to thank the experts while the query is clarified.<br> Discussion Forum - Knowledge Sharing ....