Availment and utilisation of excise

[madhavvan n]

SSI unit has turnover exceeding rs. 90 lacs it files quarterly returns for FY 08-09 it has imported and purchased locally capital goods and accordingly has posted same in cenvat register can it utilise this credit in FY 09-10 in case the turnover crosses limit of Rs. 150 lacs and it starts charging excise duty can it utilise 100% credit in FY 09-10 of capital goods it has purchased inputs and input services in FY 08-09 can it avail this in FY 08-09 and then utilise it in FY 09-10 is there any provision where if ssi unit exports please clarify whether credit is to be availed first and then utilised availment means posting in cenvat register and utilisation is actual credit being utilised for payment of duty is this correct

AI Summary

SSI Unit Inquires About Excise Credit Use for Capital Goods; Reference to Notification No. 8/2008 Provided An SSI unit with a turnover exceeding Rs. 90 lakhs, which files quarterly returns, inquired about utilizing excise credit for capital goods imported and purchased locally. The unit sought clarification on using this credit in FY 09-10 if turnover exceeds Rs. 150 lakhs and excise duty is charged. The response referenced SSI notification no. 8/2008, indicating that while the unit can avail CENVAT credit, it cannot utilize it until the SSI exemption is over. It was suggested that 100% credit could be availed in FY 09-10 and utilized thereafter.