Cevat credit available on capital goods of Bakery Machineries?

[Samik Chaudhuri]

Sir

Our manufacturing co also product Bakery product which does not attract excise now can we avail cenvat credit on machinery of Bakery lines.Please suggest me.

With thanks and regards

Samik Chaudhuri.

[YAGAY andSUN]

Dear Samik,

If capital goods are being used exclusively for duty exempted final goods, then, no CENVAT credit would be allowed. It is mentioned in the CENVAT credit Rules, 2004 and is a settled position in this regard.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[DR.MARIAPPAN GOVINDARAJAN]

CENVAT credit could not definitely be taken.

[Mahir S]

Sir,

If your bakery items are not under excise, as per your note; then why do u need to avail cenvat credit thereon, and how can you be registered with excise if your items itself is not excisable.

AI Summary

CENVAT Credit Unavailable for Machinery Producing Duty-Exempt Goods Under CENVAT Credit Rules, 2004 A query was raised regarding the availability of CENVAT credit on capital goods used for manufacturing bakery machinery, which does not attract excise duty. The first response clarified that CENVAT credit is not permissible if the machinery is used exclusively for producing duty-exempt goods, as per CENVAT Credit Rules, 2004. The second reply confirmed that CENVAT credit cannot be claimed. The third response questioned the need for CENVAT credit if the bakery items are non-excisable, suggesting that registration with excise may not be applicable.