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Cenvat on Capital Goods

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Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2010 For a running factory under excise (non-ssi) if cenvat credit is taken on capital goods for installation/erection of a captive power plant, before generation of power starts, is it irregular? Is there any stipulation that 50% of cenvat credit would be available only after the generation of power starts, irrespective of financial years regulation?

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Expert)

21 January 2010 No, there is no stipulation for taking 50% credit on capital goods only after commencing production through those machines. 50% credit is available in the finanical year of purchase and 50% in the next financial year. If any one is having other opinin, please let me also be updated.

Thanks.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2010 Yes I am inclined to accept your view. But earlier there was a 'put to use' condition. I am not sure whether is is completely done away with.

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