Cenvat credit on capital goods

2546 views 5 replies

hamid

Manager Finance/Commerce

74 Points Joined December 2007

Dear all

We are an unlisted public company and engaged in manufacturing of power and telecommunication equipments .In April 2007 we convert a part of DTA unit in to an 100% EOU unit and transferred few capital goods like testing equipments and generator sets etc from DTA unit to EOU unit without cenvat credit reversal, actually at the time of transfer of CG we already utilized cenvat credit in our DTA unit

Now our question is

1) Whether we have to reverse the duty amount from DTA unit with interest

2) If yes, can we illegible for take cenvat credit in EOU unit

3) Or , at the time of debounding we can illegible for refund claim

Kindly reply with book or court case reference

Thanks

Mohd.Hamid

Replies (5)

Deepak

Auditor

22 Points Joined July 2008

Dear Hamid

EOU Unit are not liable pay the duty on any purchase of Capital Godds and also on Raw material hence payment of duty on that purchase taken as cenvat in DT IT IS NO PROBLEM IF YOU REVERCE THE ENTRY YOU CAN NOT RECOVER THE THAT CENVAT CREDIT BECAUSE EOU ARE EXEMPTED FROM DUTY ON PURCHASE AND ALSO SALE.

Vijay K. Agrawal

Service

608 Points Joined September 2007

Dear Hamid,

when you are converting the DTA unit to 100% EOU you have to specify the aseets being trf. and the location etc. in this case you need not to pay any duty. i am assuming that that the DAT unit is converted in to 100% EOU, no material or capital goods are trf. from one place to other place.

in case you have to trf. capital goods as well as input from other units. you should have collected the CT-3 agisnt which you can trf. these material to 100% EOU without payment of duty.

Regards

Vijay Agrawal

Guest

443630 Points Joined August 2012

can avail cenvat credit of service tax on building

Keshava

Accountant

30 Points Joined July 2009

We have purchased 400 KW generator Set for our Sponge Iron Plant. How to take Cenvat Credit as Capital goods in which section.

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

Originally posted by : Keshava
	We have purchased 400 KW generator Set for our Sponge Iron Plant. How to take Cenvat Credit as Capital goods in which section.

if you are paying duty on your final products, then cenvat credit is available under "capital goods" provided the generator set is installed within the factory premises, and used for production of dutiable goods on which duty is payable at time of clearance.