Very urgent!! whether canvat credit on machines is allowed??

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Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2013 Dear Expert,

my friend has purchased machines and paid excise and VAT for production of goods( Rubber products manufacturer), his factory is in mumbai, but he installed the machines in his uncle's unit which is located in Gujrat for production of Semi finished goods. and the semi finished goods transferred to his factory at mumbai for finish goods.
my question is whether he is eligible to take Canvat credit on machines purchased( capital goods)??? he is the owner of machines purchased. please reply , amount involvement is very high.

Arun Kumar Singh

Arun Kumar Singh (Expert)

10 October 2013 You can take the cenvat credit on duty payment of capital goods installed for manufacturing of semi finished goods used in the final product.

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2013 Thanks a lot Sir for your valuable reply .

Excise consultant told him that machines installed out side the factory premises, are not eligible for Canvat credit..
please clearify..

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