Credit on capital goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2012 dear Sir my question is that suppose we removed capital goods as such in the same financial year , can we reverse credit taken on capital godds form credit taken on input goods.

CA-CWA RAVI

CA-CWA RAVI (Expert)
Follow

25 February 2012 As per rule3(5) of cenvat credit rules when goods ( be it input or capital ) are removed as such the assessee is required to pay an amount equal to cenvat availed. In this respect firstly the credit which is lying in your books RG23A and RG23C shall be utilised first and then remaining if any shall be paid through a debit in PLA.
so answer to your query is yes you can adjust cenvat on inputs for reversing cenvat on capital goods in case of removal as such, as it is treated as fresh removal of goods from your factory.

CA Punit

CA Punit (Expert)
Follow

25 February 2012 yes.. there is no diff between credit on capital goods and input goods while utilizing for payment of excise (subject to availability as per rules)