MODVAT CLAIM

This query is : Resolved

Nagendra Kumar (Querist)
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27 February 2008
Sir,

we purchased plant and machinery from Gujarat and paid Excise duty on the above purchased asset. The above said machine was used to produce Bislery Liquir,which is again Excisable product as per state Excise Act. Now can i Claim Input cenvat credit, which is paid on the machinery against the Excise duty, on the sale of Liquer?

Jitender

Jitender (Expert)
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27 February 2008 i think central excise duty is not allowed as credit in state excise laws.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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27 February 2008 AS PER CENTRAL EXCISE ACT ANY DUTY PAID ON CAPITAL GOODS AS CENVAT ,CREDIT CAN BE TAKEN IN THE YEAR OF PURCHASE SUBJECT TO 50 % OF DUTY AND THAT DUTY CAN BE ADJUSTED AGAINST THE EXCISABLE GOOODS MANUFACTURED

Jitender

Jitender (Expert)
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27 February 2008 liquor is subject to state excise and not central excise.

MANAS ROUT

MANAS ROUT (Expert)
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27 February 2008 you can claim the input of excise duty on plant & machinery(capital goods)at the rate of 50% in the first year and remaiing in subsequent year.and you have to value the plant& machinery net of excise input credit .

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