Query on Excise & Cenvat Credit

Dear Jayanta ,

the fore most question is whether X can demand te amount of duty after 5 years. In this case it was Xs duty to pay the excise. Deartment is not  concerned whether X has recovered the amount or not. 

Y is not liable to pay the duty so belatedly.
Also CENVAT can also be not taken in such manner.

Regards

Jeevesh Mehta

Ph: 9811617186

Dear sir,

since the excise duty is payable on the removal of the goods from the factroy, actual payment of excise duty from the other person is not material. the other person may also take Cenvat Credit of the duty of excise as soon as the goods are received in his factory, actula payment is not material, subject to Cenvat Credit Rules, 2004.  however, the manufacturer is required to pay the excise duty on the removal of the goods from the factory.

R/Sir,

Kindly tell me brief summary about modvat & cenvet in simple language.

Modvat is now replaced with Cenvat Credit.

Cenvat only means Excise duty,

Cenvat Credit means credit of duty of excise, customs and service tax.

cenvat credit (cc) is available only to manufactureres and service providers.

the manufacturere / taxable service provider can take the credit of excise, customs and service tax while discharging his final tax liability.

cc is available subject to some prescribed documents only.

for availing the cc the actual payment of duty or service tax is not material.

cc is available on input services, inputs and capital goods as soon as they are recived in the factory of the manufactuere and service providers. ownership of goods is not not relevant.