Cenvat credit on capital goods by SSI

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sumit (Querist)

10 January 2011 Dear Sir,
I want to ask whether new unit can avail the cenvat Credit on capital goods 100% in the year of its establishment after insertion of third proviso to Rule 4(2)(a) of cenvat credit rule 2004 w.e.f 1-4-2010.
proviso says like this -- assessee eligible for SSI exemption can take 100% credit.
and explantion make it clear- eligible means units having turnover of less than 400 lakhs in preceding financial year.
Now my question is that if any person starts a new unit whether small or a big, his turnover in the last financial year would be less than 400 lakhs. So Whether it can take the whole credit in the year of establishment as unit eligible for SSI exemption.
plz help.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

11 January 2011 It is agood question. Answer is YES. They need to intimate the dept of the action and go ahead.

Message likes : 1 times

sumit

sumit (Querist)

12 January 2011 Sir thank you very much.
I heard you in national conference for CA in Jaipur, It was a tremendous speech. I enjoyed every word said by you.
Thanks for answer

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