TaxTMI 
TaxTMI 
Assessee purchased certain machinery classified as capital goods falling under Ch- 84 , due to some reason assessee could not take cenvat credit on that invoice issued in 2014. Is Assessee eligible for taking cenvat credit on such invoice in 2016.?
Cenvat Credit
26 Nov 2016 
6 Replies 
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Cenvat credit timing: delayed claim on capital goods may be barred by the statutory time limit for initial credit.
Credit on capital goods must be taken in two instalments-50% in the financial year of receipt and the balance in subsequent years. The introduc tion of a proviso to rule 4(1) raises a one year limitation issue: one view treats delayed first instalment claims as time barred and audit vulnerable, while others contend the remaining instalment remains claimable later and advise claiming substantial credits with intimation to the department. (AI Summary)
Credit on capital goods must be taken in two instalments-50% in the financial year of receipt and the balance in subsequent years. The introduc tion of a proviso to rule 4(1) raises a one year limitation issue: one view treats delayed first instalment claims as time barred and audit vulnerable, while others contend the remaining instalment remains claimable later and advise claiming substantial credits with intimation to the department. (AI Summary)