CVD & ADC Credit on Capital , Central Excise

[Umesh Talanpuri]

Sir/Madam,

I started a new Pvt. ltd. Company. We are import 5 machines from USA on 28/02/11, on that period we have not registered with Excise, but get registration on 15/03/13, Can we take credit of CVD & ADC 100% or 50%. of capital items. 

please suggest.

your prompt reply help us.

Thanks..

Posts / Replies

[Nagabhushan Bhushan]

Dear Sir,

YES you are entitled for the credits of capital goods which are procured before the date of excise registration. There are many Tribunal decision in favor of assessee in this regard. 

In addition to that you can avail the cenvat credit of 100% of ADC and 50% of the CVD credit and related Cess as per the provisions of the cenvat credit rules. 

 

Hope the reply is sufficient for your query.