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TMI BlogCenvat credit of 4% ADI on Inputs/Capital goods recd u/r3(5) of CCR,2004X X X X Extracts X X X X X X X X Extracts X X X X ..... An assessee (A) has recd Inputs/ Capital goods from its another unit B. Unit B has debited duty -Basic duty as well as 4% ADI.A has taken credit of both. EA-2000, auditor has taken objection about credit taken of 4% ADI. According to him ,B is liable to debit but A cannot take. For this I do not agree the objection as Rule 3(6) of CCR,2004 allows the credit. I will appreciate opinion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our experts as amount of credit is high.If any case law on this than may be quoted., so the same can be shown to auditor. - Reply By Rajagopalan Ranganathan - The Reply = Sir, According to proviso 4 of rule 3 (4) of Cenvat Credit Rules, 2004 , no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, shall be utilised for payment of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax on any output service. If A and B are both manufacturers then the audit objection is baseless. If B is a service provider and A is a manufacturer, then transfer of credit of additional duty leviable under sub-section (5) of section 3 of Customs Tariff Act by B to A is in order. According to the above proviso the credit of additional duty paid cannot be utilised for payment of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax on output service only. Therefore you can contest the audit objection by quoting the above proviso. - Reply By MUKUND THAKKAR - The Reply = You may go with the view is given by Rajagopalan Ranganathan, if auditor is not agree than taking memo from him and given written submission with your disagreement of points. - Cenvat credit of 4% ADI on Inputs/Capital goods recd u/r3(5) of CCR,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 004 - Query Started By: - ramniranjan kandoi Dated:- 27-12-2015 Central Excise - Got 2 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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