Cenvat credit of capital goods purchased before excise registration

[Mehul Pandya]

Sir,

SSI unit have purchased capital goods before 2 years. After that they have taken excise registration as and when they have crossed 1cr. and filling their return time to time. Now in this case unit is eligible to take credit on such capital goods.

Thanking you

AI Summary

SSI Unit Seeks CENVAT Credit on Capital Goods Bought Pre-Registration; Timeliness and Capitalization Key Issues An SSI unit purchased capital goods two years before obtaining excise registration. After crossing a turnover of 1 crore, the unit sought to claim CENVAT credit on these goods. Experts advised that CENVAT credit is permissible if the goods were not capitalized with the gross amount, as per CENVAT Credit Rules, 2004. The credit can be claimed if the goods are still in use, but the department might challenge the claim if not made within a reasonable time, typically within one year of receipt. A reasonable explanation for the delay is necessary.