Cenvat Credit issue at the time of Registration

[Varun Arora]

Dear Experts,

Please resolve my query

In the first year I purchased raw material and capital goods and cleared material around of ₹ 120 lakhs, Now I want to get registeration under Central Excise.

At the time of registeration There was some stock lying in the premises in the shape of final product and raw material And I am Eligible for cenvat credit on Raw material which is lying in the premises as a raw material and in the shape of Final product, As I will pay excise duty on that final product while clearance.

Now My question is that Whether after completing registeration process, like filing A1, and physical verification of Premises by Excise officer, I need to file application regarding of cenvat credit on Raw material and Capital goods.

And after filing this application Excise officer again visit my factory for physical verification for allowing us for taking the Cenvat credit.

And my next question is that Excise officer is saying that If you will take cenvat credit of Capital goods then in the next year You have to pay duty from the day one means benifit of value based Exemption 150 lakhs will not be availabe to you.

Thanks in advance .

AI Summary

Cenvat credit entitlement: inputs and pre-registration capital goods can be accumulated and utilised after exemption ends.
Cenvat credit on inputs, inputs in final products, and pre registration capital goods is allowable when goods become excisable; upon registration the assessee must quantify admissible credit, provide documentary evidence and notify the jurisdictional Range Officer with stock details for physical verification. Capital goods credit acquired before registration may be accumulated under a value based exemption and utilised only after the exemption threshold is crossed; phased availing of capital goods credit across years is permissible.