regarding availment of cenvat credit on capital goods

Mr Binal shah  i request you to post in expert section to get reply immediately

Central Excise duty obligation is on the manufactured product x hence the old machine on which no excise / CVD availed cannot be charged with excise duty x however document accompanying the consignment must inform the details of earlier purchase details with remark of No Cenvat duty availed

Dear Binal, Second Company can not take cenvat credit of CVD as only the importers whose name is on bill of entry can avail cenvat credit. I understand that the first company's name is on bill of entry when goods were cleared from customs.

Earlier, there was a provision that endorsement of bill of entry in another person's name used to entitle second person to avail cenvat credit. Now, there is no provision like that. It is industry's demand that this provision should be restored in Budget 2010-11. Let's see if Pranab Babu is listening.

Even otherwise, you have not paid customs duty at the time of clearance and you are not selling goods as manufacturer to another company, payment of duty forgone will not be enough to avail cenvat credit.