SSI exemption - claim of cenvat credit

[madhavvan n]

unit is availing ssi exemption under excise as turnover is more than rs. 90 lacs but less than rs. 150 lacs can it calim cenvat credit ( cpaital goods inputs / input services)

[Ravi Chopra]

If there is liability to pay excise duty while availing ssi exemption, what is the need to avail cenvat credit??

[madhavvan n]

the purpose is to utilise the credit when excise duty payment commences

AI Summary

SSI exemption and CENVAT credit - whether credit can be accumulated now for use when excise liability arises. A unit availing the SSI exemption asks if it may claim CENVAT credit on capital goods, inputs and input services while turnover falls within prescribed thresholds. A respondent observes that no excise duty liability exists during the exemption, questioning the need to claim CENVAT now; the asker explains the intent is to preserve credit for use when excise liability later arises.