CENVAT ON CAPITAL GOODS

[Sandeep Aggarwal]

Dear All

Please see the attached queries:

1. If goods covered under the Chapters 80,82,84..(Capital Goods) but are used as part or component of final product , do we need to take cenvat (@50 %) in two installments if final product removes or sale out in the same year. Can the same be treated as input and cenvat be availed 100%?

2. Is there any notification regarding non reversal of cenvat credit on tools, dies, jigs, fixtures, moulds etc when the same is sent for job worker for further processing of intermediate goods and the same do not come back within 180 days ( rather scrapped at job worker's end to produce intermediate goods)?

Thanks 

SANDEEP AGGARWAL

AI Summary

CENVAT on capital goods: staggered credit in year of receipt unless goods are cleared as such, then full credit applies.
CENVAT credit on capital goods is time limited: partial credit may be taken in the year of receipt with the balance in subsequent years unless the capital goods are cleared as such in that same year, when full credit is allowed; an eligibility exception permits immediate full credit for assessees covered by certain exemption notifications. For items sent for job work that do not return within the prescribed period, the specific sub rule governs whether reversal is required.