18 September 2010
Can a enterprise under MSME avail 100% cenvat credit on first year itself of the purchase of machinery
regards
Girish Mani
Guest
Guest
(Expert)
18 September 2010
MSME exemption notifications clearly use the words ‘first clearances on or after 1st April in any financial year’. In Remakrishna Engineering Works v. CCE, (1996) 83 ELT 346 (CEGAT), it has been held that all clearance from 1st April in chronological order have to be considered for purpose of calculation of exemption limit of Rs.100 lakhs. Thus, if some goods are cleared on payment of duty, those will also have to be considered for calulating the limit of 100 lakhs.
Rate of duty in respect of Clearances of Specified goods Value of Clearance (Rs.) Rate of duty Remarks Upto 100 Lakhs 60% of normal rate Cenvat credit is of duty available from the beginning itself 100-300 Lakhs Normal rate of duty Can avail Cenvat .
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