Cenvat credit on capitve consumption goods

Guruprakash S (Article Assistant) (24 Points)

03 February 2017  
A company has two branches, say A & B. Branch A of a company is purchasing capital goods from Branch B. The Aforesaid capital good is used by Branch A for the purpose providing output service. Branch B manufactures the capital goods and charges excise duty as per Cental Excise Valuation rule 8 (Captive consumption) at 110%. Whether Branch A is eligible to take CENVAT Credit on capital goods ?