Availment of CENVAT Credit on Capital Goods

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A Company failed to avail 50% Cenvat Credit on Capital Goods on the first year of procurement. Is it possible to avail the entire 100% in the subsequent years ?

AI Summary

Company Can Claim 100% CENVAT Credit Next Year if Initial 50% Unclaimed, Per CENVAT Credit Rule 4(2)(a). A company inquired about availing 100% CENVAT Credit on capital goods in subsequent years after failing to claim 50% in the first year of procurement. The response clarified that according to CENVAT Credit Rule 4(2)(a), only 50% of the credit can be claimed in the year of purchase, with the remaining 50% available in the following financial year. However, if the initial 50% was not claimed, the company can take the full 100% credit in the next year, provided they notify the relevant department.