Capital goods input

 

 Sir ,

  Is it possible to take Cenvat Credit on capital goods 100% in 13-14 ,  which was purchased in 12-13 , not utilized during that  financial year by  a SSI unit availing exemption  upto 150 laks. Plz help me

 

Thanking you

Raneez

Replies (2)

no, there i no such provision, you have to take 50% in the year 13-14. and rest 50% in 14-15

 

Yes

There is provision

Rule 4 (2) (a) of CENVAT Credit Rules provides that in respect of capital goods, CENVAT credit shall be taken only for an amount not exceeding 50% of duty. As per rule 4 (2) (b), balance may be taken in any subsequent financial year. It means, it is not that any credit must be taken in the first financial year. We can choose to take credit in any subsequent year, as even if we take NIL credit in the first year, it satisfied the requirement of rule 4 (2) (a) as ‘NIL’ does not exceed 50%. Infact there are so many case laws which are supporting this view.

infact you are also SSI unit and as per Second proviso of the Rule 4 (2) (a) of the CENVAT credit Rules, 2004, SSI unit can avail entire 100% Credit in first year itself w.e.f 01.04.2010 vide Notification No. 6/2010-C.E. (N.T) dated 27.02.2010.

So, you are falling in both cases and you can take credit.

 

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