https://www.taxtmi.com/forum/issue?id=106142 Rule 4(2)(a) allows only fifty per cent of CENVAT credit on capital goods in the financial year of receipt, with the balance in subsequent years, but provides full-year credit where capital goods are cleared as such in the same year or where an assessee is eligible for an exemption based on the value of clearances. The rule's reference to "clearances of all excisable goods" limits the exemption-based eligibility to situations tied to excisable goods, so service providers availing small service provider exemption are not eligible for full credit in the year of purchase and must take only fifty per cent that year and the balance later. en-us Thu, 03 Oct 2013 14:11:59 +0530 Thu, 23 Jan 2025 15:57:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=106142 Rule 4(2)(a) allows only fifty per cent of CENVAT credit on capital goods in the financial year of receipt, with the balance in subsequent years, but provides full-year credit where capital goods are cleared as such in the same year or where an assessee is eligible for an exemption based on the value of clearances. The rule's reference to "clearances of all excisable goods" limits the exemption-based eligibility to situations tied to excisable goods, so service providers availing small service provider exemption are not eligible for full credit in the year of purchase and must take only fifty per cent that year and the balance later. Discussion-Forum Service Tax Thu, 03 Oct 2013 14:11:59 +0530 https://www.taxtmi.com/forum/issue?id=106142