Six month embargo in availing CENVAT credit - CBEC forgot Rule 16
MUCH has been already written and would continue to be written in our columns on the "six month" embargo in availing CENVAT credit in respect of ‘inputs' & ‘input service' that is to take effect from 1st September, 2014.[Notfn. dt. 11.07.2014 refers]
Thankfully, documents under the cover of which ‘capital goods' have been received are left out.
Perhaps in this entire melee what the law making authorities forgot was to take care of Rule 16 of the CER, 2002 which allows a manufacturer to take CENVAT credit of the duty paid on the goods at the time of removal but which are brought to any factory for being re-made, refined, re-conditioned or for any other reason.
Now, will this credit be denied?
In the amendment they should have specified that this time limit of six months is not applicable to credit under Rule 16 of the CER.