During Jan 2013 we imported machines for our factory (SSI).
Factory was registered under excise but we could not avail MODVAT for the CVD/SAD on the imported machines as our manufacturing turnover never crossed ₹ 1.5 crores and there was no excise payable by us.
Can we take credit for the CVD/SAD on these machines supported by the BOE in the Tran-1 6a?
Claiming CVD/SAD Credit on Imported Machines: Challenges with Tran-1 6a & Tran-2 Under CGST Act Restrictions A user inquired about claiming credit for CVD/SAD on imported machines under Tran-1 6a, as their factory, registered under excise, never crossed a turnover of 1.5 crores and couldn't avail MODVAT. One response affirmed the possibility of availing credit based on the bill of entry. However, another pointed out legal hurdles, including a one-year restriction and period-specific limitations. The user further asked about claiming credit under Tran-2 if the machines were sold. It was noted that the CGST Act, 2017, imposes restrictions due to invoice age and non-reflection of capital goods credit in the ER-3 return. (AI Summary)
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