TaxTMI 
TaxTMI 
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 ?
CENVAT CREDIT ON CAPITAL GOODS PURCHASED
24 Dec 2016 
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Cenvat credit on capital goods: eligibility for pre registration purchases subject to time limits and SSI proviso.
The core operative rule is that CENVAT credit on pre registration purchases is generally subject to a time limit (commonly one year for invoices before registration), but capital goods may be claimed in two instalments across two financial years. The Third Proviso to Rule 4(2)(a) permits an assessee eligible for exemption based on clearance value (such as an SSI unit) to claim CENVAT credit for the whole duty on capital goods in the same financial year, with utilisation postponed until excise registration. (AI Summary)
The core operative rule is that CENVAT credit on pre registration purchases is generally subject to a time limit (commonly one year for invoices before registration), but capital goods may be claimed in two instalments across two financial years. The Third Proviso to Rule 4(2)(a) permits an assessee eligible for exemption based on clearance value (such as an SSI unit) to claim CENVAT credit for the whole duty on capital goods in the same financial year, with utilisation postponed until excise registration. (AI Summary)