Cenvat credit on Capital Goods

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A Company had availed 50% Cenvat Credit on Capital Goods on the first year of procurement when the unit was availing exemption under Notn.8/2003 and has not paid duty during the entire period(period refered is 2006-07). Is it allowed to avail the 50% credit in the first year ie. under exemption or 100 % credit in subsequent years ?

AI Summary

Company Can Avail 50% Cenvat Credit on Capital Goods Initially, Utilize Once Excisable Threshold is Surpassed A company availed 50% Cenvat Credit on capital goods during the first year of procurement while under an exemption and did not pay duty during 2006-07. The query concerns whether this is permissible or if 100% credit should be availed in subsequent years. The response clarifies that there is a difference between availing and utilizing Cenvat credit. The company can avail 50% credit in the first year and utilize it once the unit surpasses the specified turnover limit, making the goods excisable. The remaining 50% credit can be availed in subsequent financial years.