TaxTMI 
TaxTMI 
TaxTMI 
Cenvat on Capital Gooods
Ramesh Patel
We are regestered in Excise on 04/04/07. We purchase capital goods and avail 50% cenvat in 07-08. But due to clearence bolow Rs. 150.00 Lacs we could not utilised it in 07-08. In 08-09 we cross the clearence limit and utilised it. Weather we are eligible to claim cenvat on capital goods purchased in 07-08 even though we haven't cross clearence limit.
Business Can Utilize Cenvat Credit on Capital Goods After Exceeding Rs. 1.5 Crore Clearance, per Rule 11 Guidance. A business registered for excise on April 4, 2007, inquired about claiming Cenvat credit on capital goods purchased in the 2007-08 fiscal year. They availed 50% Cenvat credit but could not utilize it due to clearance being below Rs. 150 lakhs. In the 2008-09 fiscal year, they exceeded this clearance limit and sought clarification on eligibility to claim the credit. The response referenced Rule 11 of the Cenvat Credit Rules, 2004, and SSI exemption notification no. 8/2003 CE, confirming that credit can be availed but utilized only after reaching the Rs. 1.5 crore clearance threshold. (AI Summary)