Capital goods input in case of transition

Assessee transitted from concessional rate of duty to tariff rate to avail cenvat credit and pass on cenvat credit on invoices. Credit in the ofrm of inputs and inputs lying in finshed goods as on date of transition is eligible for credit.

A machien purchased and received 15 days before the date of transition (change in Financial year) but machien still udner installation.

 

Whether credit capital goods available for availment on the said machine in view ofthe fact that it wil lactually be used for manufacture of goods at tariff rate of duty and not concessional or abated duty goods?

If available, whether available 100% or 50% in the ifrst year ?

Whether there are any case laws to support the above actions?

Replies (2)

Cenvat credit has no link whether excise duty is paid at concessional rate or tariff rate. In view of

rule 3 of the CCR,2004, the credit is amissible when it is used in the manufacrure of dutiable products.As per rule 4 of the CCR, 2004, credit only upto 50% can be taken in the year when it was received., balance in the subsequent years.

Raksh*t verma

09810525780

Cenvat credit surely has link with tariff rates or concessional rates which are of composite nature. Thanks for the interest shown.

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