Dear Experts,
We are manufactures of dutiable products of chapter 20 and 21 and paying duty @2% as mentioned in general exemption no.46 when no cenvat credit on input availed.
Now my query is whether we are elible to get cenvat on the purchase of capital goods i,e machinery,generator etc. Please give your expert opinion.
Regards,
WADHWA
Experts Debate CENVAT Credit Eligibility on Capital Goods at 2% Duty: Rule 6(4) vs. Notification Interpretations A manufacturer inquires about eligibility for CENVAT credit on capital goods while paying a 2% duty rate under an exemption notification. An expert explains that the proviso to Notification No. 2/2011-CE does not restrict credit on capital goods, but Rule 6(4) of the CENVAT Credit Rules, 2004 prohibits credit on goods used exclusively for exempted products. Another expert disagrees, arguing that goods taxed at 2% are not fully exempt, thus eligible for credit. A third expert clarifies that goods under Notification No. 1/2011-CE are treated as exempt, affirming the ineligibility for credit. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
