Availment of cenvat credit

This query is : Resolved

HIMANSHU (Querist)
Follow

13 October 2015 Respected Professionals,
I have queries regarding availment and utilization of Cenvat Credit:

Q.1. factory was availing the benefit of any exemption Notification and due to this no excise duty were payable on Finished Products, but now exemption has been withdrawn and it starts payment of duty. Whether Cenvat Credit can be availed on capital Goods if those were purchased when factory was availing the benefit of exemption? if yes, in how much old capital goods we can avail Cenvat Credit?

Q.2. Whether Cenvat credit can be availed on Capital goods if such capital goods was using for manufacturing Duitable and Exempted Goods?if yes, in how much old capital goods we can avail Cenvat Credit?

Q.3.

Prabhat Kumar

Prabhat Kumar (Expert)
Follow

14 October 2015 Q 1. the moment you start manufacturing exisable goods credit can be taken irrespective of the fact it was used for exempted goods earlier.
Q 2. it can be subject to rule 6 of the CCR 2004.

Message likes : 1 times

HIMANSHU

HIMANSHU (Querist)
Follow

15 October 2015 Dear Sir, Thanks for reply,

an ordnance factory which was earlier exempted from excise duty but w.e.f. 1.6.15 exemption has been withdrawan.

Such factory purchased capital goods of

as folows:
in 2010 80 Crore
in 2012 20 crore
and in 2014 35 crore

will it be possible to take Cenvat credit on such capital goods?

Prabhat Kumar

Prabhat Kumar (Expert)
Follow

16 October 2015 according to settled law yes.

Message likes : 1 times

HIMANSHU

HIMANSHU (Querist)
Follow

16 October 2015 Thank u sir, will u please tell under which rule or section it is provided.

Actually local excise authorities are denying to give credit on capital goods of past years.

Please specify the specific section or rule under which it is given or give any case law for the same

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now