Capital Goods - Cenvat Credit

[saket s]

Hi,

We received certain machine in factory during exemption period, can we take Cenvat credit for the same after being brought into tax net. Are there any judgements in this regard?

Thanks

Saket

AI Summary

Eligibility for Cenvat Credit on Machinery: Rule 6(1) Restriction for Two Years Post-Exemption Period Explained A query was raised regarding the eligibility to claim Cenvat credit on machinery received during an exemption period once it falls under the tax net. One response highlighted Rule 6(1) of the Cenvat Credit Rules, 2004, stating that credit cannot be claimed on capital goods used exclusively for exempted goods or services for two years from the start of commercial production. After two years, credit may be availed if goods are not exempted. Another response noted that the two-year restriction was recently introduced, and credit could be claimed in past cases. The need for clarification from CBEC or the Government of India was mentioned.