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.

AI Summary

Small Scale Industries Can Claim Cenvat Credit on Capital Goods Pre-Registration, Says Court in CCE vs. Progressive Systems. A client purchased machinery for 10 lacs and paid 1 lac as Cenvat, questioning if an SSI can avail Cenvat credit without Central Excise registration. It was clarified that, per the Karnataka High Court decision in CCE vs. Progressive Systems, an SSI unit can take Cenvat credit on capital goods received before registration. The credit can be utilized once the unit is registered and starts paying excise duty. This precedent was also applied in the case of Naughty Foods v. CCE.