CENVAT CREDIT ON CAPITAL GOODS PURCHASED

[chetan rachhadiya]

WE ARE NOT REGISTERED IN EXCISE BUT WE HAVE PURCHASED CAPITAL GOODS PRIOR 3 YEARS AGO & WE HAVE MENTION 'EXCISE DUTY CREDIT' IN BALANCE SHEET & NOT CLAIM DEPRICIATION ON EXCISE PORTION BUT NOW WE INTEND TO APPLY FOR EXCISE REGISTRATION, DOES WE ELIGIBLE TO TAKE CREDIT NOW ?

AI Summary

Debate on SSI Unit's Eligibility for CENVAT Credit Under Rule 4(2)(a) Despite Lapsed Time Limit A company, not registered under excise, purchased capital goods three years ago and recorded 'excise duty credit' in their balance sheet without claiming depreciation. They now seek to register for excise and claim CENVAT credit. Responses indicate that they cannot claim credit now as the time limit for claiming has elapsed. However, some argue that for SSI units, there may be exceptions under Rule 4(2)(a) of the CENVAT Credit Rules, 2004, allowing credit if certain conditions are met, such as not claiming depreciation. The discussion highlights differing interpretations of the rules regarding time limits and eligibility.