Cenvat Credit

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....envat Credit<br> Query (Issue) Started By: - CA Rachit Agarwal Dated:- 3-12-2010 Last Reply Date:- 6-12-2010 Central Excise<br>Got 1 Reply<br>Central Excise<br>We are manufacturing a commodity which i....

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....s excisable. As as an expansion to our existing unit and new products, we have purchased capital goods on which excise duty has been paid. Commercial production will start after 3 years. Whether we ....

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....are eligible to avail 50% of Cenvat Credit for the capital goods received during the year of purchase/receipt, although capital goods will be used after 3 years? Reply By Brijesh Verma: The Reply: ....

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....Dear Rachit Ji The availability of CENVAT Credit is basically bound by rule 4 of CCR'04. The conditions relevant for capital goods are contained in Rule 4(2) thereof. The condition for availing credi....

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....t in respect of Capital Goods is merely 'receipt based' and not 'user-based'. Therefore, you can take 50% in first year notwithstanding year of actual 'put-to-use' of the machinery.<br> Discussion Fo....

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....rum - Knowledge Sharing ....