Sir,
We have a manufacturing unit, we purchased one machinery under chapter ID 84, in the year 2012, at that time we have no Registration under central excise,
query > we take Central excise registration in 2013, now the question is can we availed cenvat credit on above capital goods/ mchinery.
please suggest me.
Thanking you,
V.Laxmaiah
Manufacturing unit can claim CENVAT credit on machinery if excise duty wasn't capitalized and no depreciation claimed. A manufacturing unit inquired about availing CENVAT credit on machinery purchased in 2012 before obtaining central excise registration in 2013. Responses indicated that CENVAT credit can be claimed, provided the excise duty was not capitalized with the machinery's value in 2012 and depreciation was not claimed on the gross value under Section 32 of the Income Tax Act, 1961. It was emphasized that one cannot claim both depreciation on the CENVAT element and input capital CENVAT credit simultaneously, as per tax audit requirements under Section 44AB of the Income Tax Act. (AI Summary)
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