Cenvat on Capital Goods

This query is : Resolved

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)
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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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