cenvat of duty on capital goods

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agarwal ankur (Querist)
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21 April 2008 hello

A Public ltd company is putting up a plant to manufacturing News print and writing printing paper.

the co. has started the construction of building & installation of machinery for the purpose from may 2007.
The building has been constructe and the installation of the Machinery is likely to be completed by June/July 2008 only.
The company has availed Cenvat on the stenth of the Invoices of the Machinery purchased.

The Query is if we can avail 100% cenvat on machinery installing during 2007-08 for clearence of our production during 2008-.09.

We would also request to clarify of our entiltlment to avail cenvat credit during 2008-09 to the extent 50% or 100% with the help of the decided case laws or notifications or circulars

THANKS

Milind

Milind (Expert)
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24 April 2008 Cenvat of Capital Goods is claimed at50% During the financial year of procurement & balance 50% in the next financial year. In case credit is not availed in the financial year of procurement of machine then same can be claimed in the next financial year for 50% & balance 50% in the further next financial year.

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