CCR on capital goods
This query is : Resolved
29 March 2011
Greetings
Kindly elaborate on the following matter:
A manufacturer -assessee has two factories -Factory A, where production of intermediate goods takes place and Factory B, where such intermediate goods are processed into final products. Both intermediate & final products being Excisable products in their own right.
Now, I believe as the output of factory A has to be cleared to factory B for further treatment, excise duty would be payable on the same.
My query is whether such assessee can avail & utilize Cenvat Credit on Capital goods, inputs & input services used in factory A for purpose of payment of duty on such intermediate goods, being cleared to Factory B?
Kindly elaborate on the following matter:
A manufacturer -assessee has two factories -Factory A, where production of intermediate goods takes place and Factory B, where such intermediate goods are processed into final products. Both intermediate & final products being Excisable products in their own right.
Now, I believe as the output of factory A has to be cleared to factory B for further treatment, excise duty would be payable on the same.
My query is whether such assessee can avail & utilize Cenvat Credit on Capital goods, inputs & input services used in factory A for purpose of payment of duty on such intermediate goods, being cleared to Factory B?
16 May 2011
if A clear the goods to B on strength of invoice and pays duty on it, then A is eligible for input credit of capital goods.
23 May 2011
thanks for your advice!!!
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