Sir , can we take cenvat credit of 2008 year invoice in 2014 year in the month of August., Central Excise

[PAWAN KUMAR]

Sir ,

can we take cenvat credit of 2008 year invoice in 2014 year in the month of August.

regards,

Pawan

Posts / Replies

[Pradeep Khatri]

Dear Pawan,

It will depend on the accounting treatment provided to the particular invoice in 2008. If you had accounted it for with gross value, then, you cannot avail the CENVAT credit, as you might have availed the benefits under Income Tax Act and if you had accounted it for, with net off Excise Duty amount, then, after following the procedure/provisions as mentioned in the CENVAT credit Rules, 2004, you may avail the CENVAT credit.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[PAWAN KUMAR]

Thanks for your valuable suggestion,

Is there any notification where it is reflecting that 5 or 6 years bills can take for cenvat credit.

regards,

Pawan

[Pradeep Khatri]

Dear Pawan,

No, there is no such notification in this regard. But there are certain judgments which states immediate means not immediately. CENVAT credit can be availed reasonable time. Now, what is reasonable time? There is no clarification but generally 1 -2 years deemed reasonable time.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Naveed S]

Yes, there is no such notification.

However, the limitation period prescribed under the central excise law is 5 years and based on it, i feel it shall not be advisable to avail credit for any period above 5 years, though as advised above 1-2 years is a reasonable time period.