Excise Credit availed on Capital Goods

[Balamurugan R]

Dear All,

We are a Manufacturing industry, We have some input capital goods invoices which is not contain our ECC/Excise Regn No, Those invoices are eligible to take a Credit? If we take a credit on that excise dept will disallow those? But those invoices contain out complete factory address and the proof to enter into out factory(gate entry Seal)

Waiting for your valuable suggestions..

[Suryanarayana Sathineni]

Dear Friend,

In my view, if the invoices containing your correct factory address and supporting proof for due receipt of the goods into your factory, there should not be any problem in your availing credit . Of course, this is subject to 1 year time limit to avail the credit in terms of Cenvat Credit Rules,2004.

Best Regards

Suryanarayana

[Ganeshan Kalyani]

I agree with the views submitted by Sri Surya Naryana Sir. Further the credit should be taken to the extent of fifty percent in the year in which the capital goods was purchased and the balance credit shall be taken in the subsequent year.

Further if the value of capital goods is upto ₹ 10 thousand then the same shall be considered as Input and entire credit is allowed in the first year of purchase itself.

AI Summary

Excise credit on capital goods permitted with proof; subject to time limits and phased claim rules. Excise credit on capital goods is available where invoices show the correct factory address and supporting receipt evidence, subject to the time limit under the Cenvat Credit Rules, 2004; credit is claimed in a phased manner for capital goods unless classified as inputs under the regulatory threshold, in which case full credit is allowed in the year of acquisition.