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Credit on Capital Good

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This query is : Open

Soumyen Sarkar (Querist)
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15 April 2010 If a factory brings in some capital goods but does not take cenvat credit in the year of its procurement, can the factory take 100% credit in the next year?

Illustration :

Procurement of Capital Goods - April 2008-09

No Credit taken in 2008 - 09 0r 2009 - 10

Can the factory take 100% credit in 2010 -11 in one entry in the credit register?
or, what should be the manner of taking credit in this case? Please cite Rules and notifications.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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17 April 2010 Please see the CCR.

As long as depreciation on the duty is not availed the credit of 100% of the CED is possible as long as the CG are used partially for manufacture of ewxcisable goods.

Soumyen Sarkar

Soumyen Sarkar (Querist)
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01 May 2010 My question is not 100% settled. Is it possible to take 100% credit in subsequent year after the year of procurement?

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