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Nripendra Tripathi

Officer ( F & A )

23 Points Posted on 02 December 2009

I have two very important issues the answer is required

1.That I have availed 100% cenvat crdit on capital goods in the year when capital goods used in the factory itself.This was done on premise that since in the first year no credit has been availed Thus we could take balance 100% credit in the first year itself.

2.In our industry some pipelines are used outside the premises of factory i.e City Gas Distribution network can we avail credit on capital goods in this case.

Replies (4)

sivaram

Asst Mgr-Taxation

5764 Points Posted on 02 December 2009

you can take credit there is some case law also in this regard which i cannot remember

CA Rahul Agrawal

C.A

44 Points Posted on 02 December 2009

credit on capital goods taken 50% in year of purchase and balance 50% in first day of next year

Swati

71 Points Posted on 02 December 2009

Mr Tripathi,

50% of the cenvat credit can be taken in the first year of receipt of capital goods. Balance 50% can be taken in the subsequent year provided the capital goods are in your possession.

If u have not taken credit in the first year, you can take the entire 100% in the second year. There is no problem w.r.t. the availment of the credit.

U can take credit of the pipes used outside factory based upon the judgement in teh case od Vikram cements (SC). I do not have the citation with me right now.