cenvat credit

CENVAT Credit on Commission Agents Services – Calcutta High Court

Excise Duty - A vexed issue, being eligibility of CENVAT credit on Sales Commission Agent's Services, post the judgment of the Hon’ble Gujarat High Court in Cadila Healthcare Limited, came up before the Division Bench of Hon’ble Calcutta High Court. The period in dispute in this case was from 2011 to 2016....

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Taking credit and then reversing the same entry is as good as not taking the credit at all

Excise Duty - CESTAT held that in a case where the assessee is a manufacturer of dutiable goods as well as exempted goods and it is impractical to maintain separate accounts of common inputs used in manufacture of dutiable goods and exempted goods the only practical way of maintaining accounts is by corresponding credit and debit entries, reversing pro...

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Company entitled to refund of Cenvat credit lying in Cenvat credit account on closure of business

Excise Duty - Appellant is entitled to refund of the amount of Cenvat Credit lying in their Cenvat Credit account on closure of business along with interest....

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Reversal formula of ITC on exempted supplies applicable to ‘common input tax’ credit

Excise Duty - Nothing in the CCR prohibits an assessee from following Rule 6(2) of the CCR in respect of the inputs and input services where it is feasible to maintain separate records and follow Rule 6(3A) of the CCR in case of such inputs or input services where it is not feasible to do so....

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Refund of Cesses In Cash Not Allowed

Excise Duty - 1. FACTS OF CASES: 1. M/s Mylan Laboratories Ltd (appellant) is engaged in the manufacture of pharmaceutical and is 100% EOU. The appellant was availing the benefit of CENVAT credit under CENVAT Credit Rules 2004. The appellant filed a refund claim dated 04.01.2018 seeking refund of Rs 28,600/- of its unutilised balance of cesses lying [&...

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Download ICAI Technical Guide to CENVAT Credit

Excise Duty - Introduction of CENVAT credit rules across goods and services in the year 2004 was one of the major steps in indirect taxes reform process. Since then these rules have undergone significant changes as the Government has addressed issues and difficulties faced by tax payers and also taken steps to reduce cascading of taxes. Union Budget [&...

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Summary of Performance Audit on Cenvat credit scheme.

Excise Duty - We observed instances of non-submission of various prescribed returns by the assessees. Non-submission of returns would hinder the department’s ability to verify the duty paid by assessees, correctness of valuation, availing of Cenvat credit, ...

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Changes in Excise Duty Rates in Union Budget 2009

Excise Duty - However, the said goods would be exempt from excise duty subject to non availment of Cenvat credit on input. [Notification No 30/2004-CE refers]. Thus, the exemption will be optional. Those opting to pay duty @ 4% will be eligible to avail Cenvat credit. The applicable rates for CVD purposes will be 4%....

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CESTAT allows Cenvat Credit of Input Services used for Removal & Disposal of Fly Ash

Shyam Metalics & Energy Limited Vs Commissioner of CGST & CX (CESTAT Kolkata) - The issue required to be decided in the present appeal is as to whether the services obtained by the appellant for removal of coal fly ash from the captive power plant which is used for generation of power, which in turn, is captively consumed for manufacture of excisable goods, can be held to be an...

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Refund claim not to be filed for suo motu credit of Cenvat reversed earlier

Mideast Integrated Steels Ltd. Vs Commissioner of CGST & Excise (CESTAT Kolkata) - Suo motu credit of Cenvat reversed earlier involved only an account entry reversal and in the process, no outflow of funds from the assesse and accordingly, filing of refund claim under Section 11B of the Central Excise Act, 1944, is not required....

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Cenvat Credit not eligible on Rent-a-Cab service if Assessee not in business of renting vehicles

N R Agarwal Industries LTD Vs C.C.E. & S.T. (CESTAT Ahmedabad) - N R Agarwal Industries LTD Vs C.C.E. & S.T. (CESTAT Ahmedabad) Limited issue involved is whether the appellant is eligible for Cenvat credit in respect of Rent-a-Cab service. Both the lower authorities have denied the Cenvat credit on the ground that the said service is excluded for allowing the...

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Penalty cannot be imposed under Rules 26 of Central Excise Rules, 2002 on employee of Company

Hubergroup India Pvt Ltd Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad) - Hubergroup India Pvt Ltd Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad) As regard, penalty imposed on Shri. Suresh Nair employee of the appellant’s Company. I find that the issue of correct calculation of Cenvat Credit on the invoice issued by the 100% EOU was always in dispute, therefore, mala fid...

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Cenvat Credit cannot be denied merely because zonal offices are situated separately

Punjab National Bank Vs Commissioner (CESTAT Delhi) - CESTAT Delhi held that as the zonal offices are integral part of the appellant and hence location of the same hardly makes any difference Accordingly Cenvat Credit allowed in respect of input services availed by zonal offices allowed....

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Provisions in Cenvat Credit Rules 2004 regarding reversal of credit

Circular No. 213/3/2019-Service Tax - (05/07/2019) - Is reversal under rule 6(3) of the Cenvat Credit Rules 2004 additionally required for all the services specified in notification 26/2012-Service Tax dated 20-6-2012?...

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CGST (Amendment) Act, 2018- Clarification on Transitional Credit

Circular No. 87/06/2019-GST - (02/01/2019) - The CENVAT credit of service tax paid under section 66B of the Finance Act, 1994 was available as transitional credit under section 140(1) of the CGST Act and that legal position has not changed due to amendment of section 140(1) on account of following reasons:...

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CBEC notifies CENVAT Credit Rules, 2017

Notification No. 20/2017-Central Excise (N.T.) - (30/06/2017) - CENVAT credit. - (1) A manufacturer or producer of final products shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of –(a) the duty of excise specified in the Fourth Schedule to the Excise Act, as leviable under the said Act,...

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Availability of Cenvat Credit on inputs used in the manufacture of capital goods

F.No.267/11/2010-CX8 - (08/07/2010) - I am directed to invite your attention to the landmark judgement of the CESTAT Larger Bench in the case of Vandana Global Ltd. V/s CCE, Raipur [2010-TIOL-624-CESTAT-DEL-LB] delivered on 30.04.10, on admissibility of credit on capital goods and inputs and to state that the Tribunal has ruled that ‘...

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Rule 5 of the Cenvat Credit Rules, 2004 – Refund of Cenvat Credit – Amendment to Notification No. 42/2001-CE (NT), dated 26-6-2001

Circular No. 928/18/2010- Central Excise - (28/06/2010) - It has been brought to the notice of the Board that some of the manufacturers of exempted goods are exporting such goods under bond. Subsequently, they claim refund of accumulated input credit under Rule 5 of the CENVAT Credit Rules, 2004....

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Recent Posts in "cenvat credit"

CESTAT allows Cenvat Credit of Input Services used for Removal & Disposal of Fly Ash

Shyam Metalics & Energy Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)

The issue required to be decided in the present appeal is as to whether the services obtained by the appellant for removal of coal fly ash from the captive power plant which is used for generation of power, which in turn, is captively consumed for manufacture of excisable goods, can be held to be an eligible cenvatable input service....

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Refund claim not to be filed for suo motu credit of Cenvat reversed earlier

Mideast Integrated Steels Ltd. Vs Commissioner of CGST & Excise (CESTAT Kolkata)

Suo motu credit of Cenvat reversed earlier involved only an account entry reversal and in the process, no outflow of funds from the assesse and accordingly, filing of refund claim under Section 11B of the Central Excise Act, 1944, is not required....

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Cenvat Credit not eligible on Rent-a-Cab service if Assessee not in business of renting vehicles

N R Agarwal Industries LTD Vs C.C.E. & S.T. (CESTAT Ahmedabad)

N R Agarwal Industries LTD Vs C.C.E. & S.T. (CESTAT Ahmedabad) Limited issue involved is whether the appellant is eligible for Cenvat credit in respect of Rent-a-Cab service. Both the lower authorities have denied the Cenvat credit on the ground that the said service is excluded for allowing the Cenvat credit as per exclusion Clause [...

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Penalty cannot be imposed under Rules 26 of Central Excise Rules, 2002 on employee of Company

Hubergroup India Pvt Ltd Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad)

Hubergroup India Pvt Ltd Vs C.C.E. & S.T.-Daman (CESTAT Ahmedabad) As regard, penalty imposed on Shri. Suresh Nair employee of the appellant’s Company. I find that the issue of correct calculation of Cenvat Credit on the invoice issued by the 100% EOU was always in dispute, therefore, mala fide cannot be attributed to the employee [...

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Cenvat Credit cannot be denied merely because zonal offices are situated separately

Punjab National Bank Vs Commissioner (CESTAT Delhi)

CESTAT Delhi held that as the zonal offices are integral part of the appellant and hence location of the same hardly makes any difference Accordingly Cenvat Credit allowed in respect of input services availed by zonal offices allowed....

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CESTAT allows Cenvat Credit on Advertisement & Sales Promotion Services to Dabur India

Dabur India Limited Vs C.C.E & S.T.-Silvasa (CESTAT Ahmedabad)

Dabur India Limited Vs C.C.E & S.T. (CESTAT Ahmedabad) Appeal No. E/10573/2015 is filed by appellant – M/s. Dabur India Limited (Unit-1) against Order-in-Original No. VAP-EXCUS-000-COM-014-14-15 dated 30.12.2014 and Appeal No. E/10574/2015 is filed by appellants-M/s. Dabur India Limited (Unit-2) against Order-in-Original No. VAP...

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Cenvat credit of CVD paid by debit in SFIS scrip – CESTAT directs re-adjudication

Nayara Energy Limited Vs Commissioner of Central Excise & ST, Rajkot (CESTAT Ahmedabad)

Nayara Energy Limited Vs Commissioner of Central Excise & ST, Rajkot (CESTAT Ahmedabad) The issue involved in this case is regarding the eligibility to avail Cenvat credit of the amount of CVD paid as debit in Served From India Scheme (SFIS). It is undisputed that as per Rule 3 of the Cenvat Credit Rules, any […]...

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No duty demand in absence of mala fide intention to send semi-finished product to hired premises

Mohata Coal Company Pvt. Ltd Vs Commissioner of CGST (CESTAT Kolkata)

CESTAT Kolkata held that duty cannot be levied in absence of evidence proving that semi-finished products is sent to the hired premises with mala fide intention of the appellant....

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Irregular CENVAT Credit availment cannot be alleged without any evidence & merely based on statements of transporters

AIC Iron Industries Private Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)

AIC Iron Industries Private Limited Vs Commissioner of CGST & CX (CESTAT Kolkata) The first issue involved in this case is whether the Appellant had availed irregular CENVAT Credit as arrived by the Department holding that it was paper transaction without receipt of raw materials. Second issue is whether under the circumstances and th...

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Penalty under Rule 26 cannot be imposed for issuance of bogus LRs prior to 01.04.2007

Rajesh Kumar Narula Vs C.C.E. & S.T. (CESTAT Ahmedabad)

Rajesh Kumar Narula Vs C.C.E. & S.T. (CESTAT Ahmedabad) CESTAT find that there is no dispute about the fact that the period involved in the present case is 2004-05. The offence of issuing bogus LR can at the most fall under the provision of Rule 26(2) of Central Excise Rules, 2002. However, the said provision […]...

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