26 July 2016
Sir, We are a SSI unit registered with Excise since 2005 .Commenced new project in manufacturing of intermediate products.we have procured machinery in Nov14 for the same.The commercial production commenced in Nov'15. Can we avail the cenvat credit in Jul'16 ? As per Notification 21/2014 ce(nt),the time limit is applicable for Rule 4(1) and 4(7).These two rules talk about taking credit in respect of inputs and input services. Rule 4 (2) talks about taking credit on capital goods. The above proviso prescribing time limit for taking credit is not inserted in rule 4(2). Therefore on capital goods the credit can be taken at any time but on the condition that the said capital goods should be received in the factory of manufacture. Now the capital goods are received in the factory. Kindly suggest that can we avail the input cenvat credit in Jul'16?
CAclubindia
