Availment of Cenvat Credit on Capital Goods

[HImanshu Singh]

Respected Members, I would Like to ask a query relating to CCR on Captal Goods:

1. A Factory Purchased the duty paid capital goods during the period when it was availing an exemption, due to exemption factory did not availed the CCR on capital goods as its final products were Exempted.

Subsequently Govt. withdrew the said exemption and all the final products become duitable, in that case whether factory can avail the CCR on Capital Goods which were purchased during the period of exemptions as the capital goods are continued to be used in the factory? If Yes then what will be time limit for the same?

2. A factory Manufacturing Taxable and exempted both types of final Products, it purchased a capital goods which is commonly used in manufacturing of both taxable and exempted Products. Whether CCR can be availed and utilized for payment of Excise duty on Dutitable Products? If Yes then what will be time limit for the same?

Please give your valuable comments on the same.

AI Summary

Factory Can Claim CENVAT Credit on Capital Goods Post-Exemption Period if Not Used Exclusively for Exempt Products A discussion forum addresses queries about availing CENVAT credit on capital goods. A factory that purchased duty-paid capital goods during an exemption period questions if it can claim CENVAT credit after the exemption is withdrawn. Experts agree that credit can be availed if the goods are not exclusively used for exempted products, emphasizing the settled legal position. The discussion covers rules, amendments, and case laws, highlighting the importance of not claiming depreciation on excise duty. Various opinions suggest that credit can be claimed even if the exemption was initially in place, subject to specific conditions and rules.