MARCH 02, 2015

By G Natarajan, Advocate, Swamy Associates

WITH effect from 01.09.2014, a time limit of six months from the date of the document was introduced to avail cenvat credit on inputs and input services. This restriction was introduced vide Notification No. 21/2014 CE NT Dt. 11.07.2014. So a grace period from 11.07.2014 to 31.08.2014 was allowed to all concerned to avail all unavailed credits. But still, many manufacturers and service providers would have missed to avail cenvat credit on certain invoices, due to this restriction introduced in the Cenvat Credit Rules, 2014 with effect from 01.09.2014. Now comes another chance for them.

This time limit of six months has been enhanced to one year with effect from 01.03.2015, vide Notification 6/2015 CE NT Dt. 01.03.2015. So, if there are any invoices dated from 02.03.2014 onwards, for which the credit was not availed earlier, now there is a chance to avail such credits within one year from the date of such invoices. For example, if any invoice is dated 02.03.2014, for which credit was not availed earlier, such credit can be taken on 01.03.2015 and so on.

So let all manufacturers and service providers lock themselves up in their record room and look for non credit availed invoices and utilise the second life granted by the Government, to avail credit.