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

CENVAT credit on capital goods: available unless capital goods are exclusively used for exempted manufacture, subject to conditions.
Whether CENVAT credit on capital goods is barred by the conditional exemption hinges on use. If capital goods are exclusively used to manufacture exempted goods under the notification, credit is not available; if they are used for both exempted and dutiable goods, credit may be availed. An alternative interpretation confines the notification's restriction to inputs and input services and not to capital goods, while acknowledging that exclusive use for exempted manufacture triggers the time-related limitation under the Cenvat Credit Rules.