Cenvat credit before production

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CA Nikhil Jhanwar (Querist)
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16 July 2011 The factory is yet start the production. Inputs and capital goods are received. Whether Cenvat credit can be taken on such inputs and capital goods received before commencement of production?.

Further when the factory should take registration in excise, now or after production is started?

U S Sharma

U S Sharma (Expert)
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17 July 2011 without registration you can avail any input credit on purchase prior to registration.

for input credit, you need your registration number conveyed to dealer / manufacturer, and they will put your regn no on invoice.

for registration ....... commercial production not a mandatary clause, as if you wish to pay duty from very 1st sale, then you can take registration prior to production, take cenvat credit, and pay duty from very 1st clearance.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Querist)
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17 July 2011 Sir whether you can provide any case law on the same........

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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18 July 2011 Nikhil, Please go through cenvet credit rule and excise law in this regard

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CA Nikhil Jhanwar

CA Nikhil Jhanwar (Querist)
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18 July 2011 Ok....... Sir

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 July 2011 Your question is covered by the CENVAT Credit on Capital Goods. The act is very much clear that the same is to be spread over number of years and accordingly it can be claimed in parts. Refer the law of the state concerned.

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