Question26:

Can a manufacturer, who is not registered in excise, claim Input of machinery bought in JUNE 2017 if `excise invoice` is available?

Answer:

As per section 140(3) same is as follow

(3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012'Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:''

                (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act;

                (ii) the said registered person is eligible for input tax credit on such inputs under this Act;

                (iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs;

                (iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and

                (v) the supplier of services is not eligible for any abatement under this Act: 

Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed.

So credit (excise) of machine is not available  

The only way was if the machine is rejected and sent back to the supplier then the supplier can take refund of the excise paid on it After it the supplier will clear it on payment of tax(GST) which can be taken as credit by the registered person.

Rejection of old machine is possible up to six month from 1st july 2017.

You have to see all the possibility and cost like transportation of machine both side cost removing cost of refund and whether the supplier is ready for it We think at last moment there is very low possibility of getting it done.  

NOTE  Please dot try to do it on paper only you have to do all exercise in actual.  (Reply Dt. 26/12/2017)