Time limit

Own Business

Dear All, 

Is there is any time limit period for to avail input credit on customer returned goods. Rule 16 does not 

say about time limit period. 

My understand is the time limit ( six month ) applicable for Service return.  Please clarify. 



Every rules have time limit if there is no limitation then the general principle of law will be applicable. So check the limitation act. As per my knowledge for service tax you have maximum time I.e. 1 year.



Jyotirmaya Prasad Behera




Consultant in Indirect Tax Matters

Dear Mr. Prakssh,

In terms of Cenvat Credit Rules,2004 time limit for taking credit of duty paid on inputs/Capital Goods and input services is 1 year.

Under Rule 16 of CER,2002, facility of taking credit of the duty paid on the Returned Goods ( either paid the assessee or the customer while returning) provided and since the said facility is on par with  the Cenvat Credit , the time limit of 1year is applicable for the credit taken under Rule 16 of CER,2002.

Best Regards


Own Business

Suryanarayana Sir,

Thanks for your clarification. Now I understood that the time limit applicable both Input service credit and cenvat credit also.  thanks sir. 




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