Registration

[varun arora]

Dear All,

One of my client purchased a new machinery, say 10 lacs, and paid 1 lac as cenvat.

now my question is that whether As a SSI he can avail Cenvat of rs. 1 lac without registering into Central excise.

Is rule 9 of central excise mandates Assessee for Registration requirement before availing Cenvat credit.??

Thanks in advance.

[Rajagopalan Ranganathan]

Sir,

It is held by Karnataka High court in CCE vs. Progressive Systems [2012 (267) ELT 473 (Kar. HC DB)] = 2011 (2) TMI 477 - KARNATAKA HIGH COURT that an SSI unit can take Cenvat credit of capital goods received when he was not registered. He can utilize the credit when he is registered and starts payment of excise duty. This decision is followed in Naughty Foods v. CCE (CESTAT-SMB)

[varun arora]

Thanks a lot Sir.

AI Summary

Cenvat credit for capital goods acquired before registration may be claimed and used after registration and duty payment.
Acquisition of capital goods while unregistered does not bar an SSI from taking Cenvat credit; the credit can be availed only after the unit obtains registration and begins payment of excise duty, thereby allowing utilisation of pre-acquired capital goods credit upon fulfilment of registration and duty-payment conditions.