CENVAT on Capital Goods

Hi,

Can a assesee utilize the the duty paid as CENVAT on capital goods purchased prior to registration under central excise?

Can he utilize the CENVAT on inputs purchased prior to registration?

 

Regards

Replies (9)

no... assess can not utilize cenvat on capital goods of prior to registration under central excise?

Originally posted by : Pankaj Arora

no... assess can not utilize cenvat on capital goods of prior to registration under central excise?

yes, i agree with Pankaj.

No. Where is the question of duty payment before registration?? He cannot utllise the CENVAT on Capital goods before Excise REgistration.  Once he crosses of 150 lacs, he should get himself registered under the Excise Act.  And can avail all the CENVAT benefits including on Capital goods.

Incidentally, there is a transitional provision under the same Act, to take credit on the inputs available on the opening stock of Excise duty paid materials.  All the orginal Excise Input invoices are to be kept in tact to avail the benefits.

rengaraj r.k

 

I think i need to rephrase my question with an example. 

X Co. purchased machinery in october 2010.

Purchased inputs in january 2011.

Took excise registration in february 2011.

 

whether cenvat on such machinery and input available post february 2011?

CENVAT on capital goods is available (purchased prior to registration but physically available for manufacture as on the date of registration) for those who availed notification no.8/2003-C.E dt 1.3.2003  

For E.g SSI unit can take credit of duty paid on capital goods which can be used after crossing the 150 lacs threshold exemption limit.  Confirm whether your question fits in to this category to avail the cenvat benefit  post february 2011, ie. after registration. 

Originally posted by : Jeevesh

I think i need to rephrase my question with an example. 

X Co. purchased machinery in october 2010.

Purchased inputs in january 2011.

Took excise registration in february 2011.

 

whether cenvat on such machinery and input available post february 2011?

excise registration has diff avenues for cenvat credit 

please specify that you have opted for ...............

1) exemption of 150 lacs? ...........or

2) pay duty from 1st sale ............or

3) avail any exemption scheme ........or

4) avail any abatement ..............or 

5) simaltenous availment of exempted as well as duty payment for diff catagory of goods?

except 2) above , input credit is not available .........................

without your excise registration number on your  purchase invoice it is not possible to calim the credit

X co. is manufacturing the goods under the brand name of another. X co will pay the excise duty from the very first clearance .

 

Also please clarify: under MRP based valuation the assessee is availing abatement as per the notification. So, after taking the abatement can he take and utilize CENVAT credit on inputs?

 

 

 

Yes manufacturing under other brand name X co. have to pay excise duty from the first clearance

And for second question also yes X co. can take input credit  and utilize it for payment…

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