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Excise on capital goods?

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Nitesh Choraria

Member

28 Points Posted on 23 February 2013

Dears,

I have come across a querry. Plz help me....

A company bought a machinery (Capital goods) & paid Excise duty thereon. Now, the machine is used for manufacturing an excisable goods, & a non-excisable goods. How to avail Cenvat Credit in the following case?

Further, if company doesnt maintain proper books for such, what would be the impact? Will your answer differ from the above?

Thanks & regards,

Nitesh Choraria

Replies (1)

Prabhat Kumar

Advocate & Consultant

1820 Points Posted on 26 February 2013

If the captal goods is used for manufacturing of exemted as well as dutiale goods then cenvat credit can be availed.It can be denied only if the capital goods is used in production of exempted goods.[CCE VS RASHTRIYA ISPAT NIGAM [(2010)250 ELT 568].