Eligibility of CENVAT credit

[VAMSI KRISHNA]

Dear All,

Assessee availed benifit of Notification 1/2011 central excise dated 1/mar/2011

my doubt is 'whether assessee can take CENVAT credit paid on CAPITAL GOODS'??????

In aforesaid notification specifically said that if assessee taken CENVAT on 'inputs and input services' then that assesse is ineligible to avail this benifit. Aforesaid notification is silent about CENVAT on capital goods. please guide me??????

Thanks in advance

AI Summary

Clarification Sought on CENVAT Credit Eligibility for Capital Goods Under Notification 1/2011 and Current CENVAT Rules An individual sought clarification on whether CENVAT credit can be claimed on capital goods under Notification 1/2011 of central excise. One respondent, Rajagopalan, stated that credit cannot be availed if capital goods are used solely for manufacturing exempt goods, but it can be if used for both exempt and dutiable goods. Another respondent, Suryanarayana, argued that the notification does not restrict CENVAT credit on capital goods, as it only limits credit on inputs and input services. However, if capital goods are used exclusively for exempt goods, credit cannot be claimed for two years under current CENVAT rules.