Exice credit on capital goods

920 views 5 replies

 

If exice credit in next year (balance 50%) not availed than i can availe it in following year?

if total credit availed in first year itself than what to do? if for that year b.s. finalised and submitted.

Replies (5)

Balance 50% can be can be availed in subsequent years. It is not necessary that the balance should be availed in the immediately suceeding year only. The answer to your 1st question is in affirmative.

 

If the entire credit is availed in the first year itself, you need to reverse the credit (50%)along with interest.  How ever you shall be eligible to take back the credit on such reversal.

 

Unable to comment on the last query.

 

 

I also agree with Mr. Shyam..

 

In my opinion, if BS is final n already has been submitted then its the matter of assessment only. n there is no need to rectify the BS after assessment.

 

Adarsh

tanx...

Dear All :

We are into mixing and blending of oil manufacturing division.  For mixing and blending we require to prepare huge tanks and for which we had to purchase steel and other allied products on which we have paid central excise duty.  Now my question is :

1) Can we claim the central Excise duty on the material purchased for preparation of tanks.

2) If yes what is the time limit for availing the Capital Goods Credit.

3) If the duty is not taken since last 2 years and the factory is also not started yet and will take one more year to get into production.  Can we claim the duty today or on the day we start the production.

Pls. advise

 

Santosh Chauhan

When an assessee starts paying duty, he can avail cenvat on all inputs, capital goods lying in the factory. Inputs need not be in stock, even when inputs are in semiprocessed state or in finished goods state, credit is available [Gilt Pack 1999 (114) ELT A226]. The provisions are there in Rule 3(2) of the Cenvat Credit Rules.

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