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

Cenvat credit on pre-registration capital goods permitted if goods remain in use and reasonable explanation is provided.
Cenvat credit on capital goods purchased before excise registration may be availed if the goods remain in use and the assessee has not claimed depreciation on the gross amount; Rule 6(4) contains no explicit time limit to claim credit, but utilization is constrained while SSI exemption applies and authorities may require a reasonable explanation for delayed claim, with a one-year-from-receipt presumption of timeliness often relied upon.