Excise exemption and credit on capital goods

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This query is : Resolved

ashish (Querist)

08 September 2010 hello

Actually we are setting up a plastic manufacturing plant. and we are in a big confusion whether to register for excise or not.

We are paying heavy excise duty on machine. Should we get the credit of this cenvat along with exemption and in which structue we will get the credit.

Also the raw material that we will procure is also duty paid.

so please help us.

thanking you

Regards,
Ashish Agrawal
8895250952

tarun goel

tarun goel (Expert)

08 September 2010 dear go ahead, register your self with the central excise department.take cenvat credit on capital goods and inputs. but don't utilise till your first clearance after production. also, ensure that you are not working under any exemption notifcation.

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Kariyappa

Kariyappa (Expert)

08 September 2010 Yes Tarun goel is right , and one more thing 1st Yer oyu take 50% credit on capital goods

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ashish

ashish (Querist)

08 September 2010 Thank you for quick reply

but if we take the cenvat credit so shall we get the exemption of Rs 1.5 Cr...

If possible pls state an example whn the turnover would be Rs 3Cr....

Thanks

tarun goel

tarun goel (Expert)

08 September 2010 no dear, if you take cenvat credit, you won't get SSI benefit.

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