Cenvat credit on capital goods

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.

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

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.