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TMI BlogCENVAT CREDIT ON CAPITAL GOODS PURCHASEDX X X X Extracts X X X X X X X X Extracts X X X X ..... WE ARE NOT REGISTERED IN EXCISE BUT WE HAVE PURCHASED CAPITAL GOODS PRIOR 3 YEARS AGO WE HAVE MENTION EXCISE DUTY CREDIT IN BALANCE SHEET NOT CLAIM DEPRICIATION ON EXCISE PORTION BUT NOW WE INTEND TO APPLY FOR EXCISE REGISTRATION, DOES WE ELIGIBLE TO TAKE CREDIT NOW ? - Reply By MAHESHKUMAR SHARMA - The Reply = No, now your are not able to take credit, as at the time of purchase made Inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut /Capital goods received to you you are not covered under excise. - Reply By Ganeshan Kalyani - The Reply = Also the timeperiod within which the credit to be claimed is elapsed. - Reply By chetan rachhadiya - The Reply = sir, does this time limit applicable to capital goods because in notification they don't mention capital goods anywhere? secondly we have not taken double benefit of cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iming depriciation cenvat credit simultaneously. - Reply By KASTURI SETHI - The Reply = Sh.Chetan Ji, Pl. read Rule 4 (2) (a) of Cenvat Credit Rules, 2004. - Reply By chetan rachhadiya - The Reply = please see issue ID 107027 - Reply By KASTURI SETHI - The Reply = Sh.Chetan Ji, The time limitation of one year is not applicable to the Capital Goods to the EXTENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that credit can be taken in two steps i.e. first during the year of purchase of capital goods and balance in the next financial year.. It is nothing else and not more than that. This position existed already prior to the restriction of six months or one year. - Reply By VAMSI KRISHNA - The Reply = Dear chetan rachhadiya ji Let me know why your primises not registered under central excise befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 3 years. that is when purchase of capital good. is any reason is there????? or your primises is not required to take registration at the time of purchase of capital good ???? - Reply By chetan rachhadiya - The Reply = sir, our's is SSI unit that time we don't have any planning to go for excise registration.still our turn over is less than 150 lac but we have planning to purchase exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sable capital goods in coming days. - Reply By KASTURI SETHI - The Reply = Invoices of capital goods before registration are eligible for credit but these should not be more than one year old. - Reply By VAMSI KRISHNA - The Reply = Dear All, As per the Central Excise Rules 2002 , the persons who manufacture the goods specified in the First Schedule to the Central Excise Tariff Act, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 (5 of 1986) which are chargeable to nil rate of duty or remain fully exempt from the whole of the duty of excise leviable thereon is need not be required to get his primises registrared with central excise departement. As per the Third Proviso to Rule 4(2)(a) of CENVAT CREDIT Rules 2004 , Provided also that where an assessee is eligible to avail of the exemption under a notification bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the value of clearances in a financial year, the CENVAT credit in respect of capital goods received by such assessee shall be allowed for the whole amount of the duty paid on such capital goods in the same financial year. By applying Above provisions Even through assessee has no registration under central excise he can avail the CENVAT credit at the time of purchase by passing a book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry as now the queriest done. In case of SSI units the year limit of 2 is is not applicable as per the Third Proviso to Rule 4(2)(a) of CENVAT credit Rules 2004 . At the time of purchase of capital good itself he eligible to take CENVAT credit but the utilisation only postponed upto when he started collecting duty by taking registration under central excise. In my view Querist purchased c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital good and he showed as an assest without claiming depreciation. So he can take CENVAT credit in view of above provisions. Respected KASTURI SETHI ji, Let me know relavent provision in excise act and rules made there under for time limit for allowing cenvat credit for inputs/capitalgoods/inputservices when they are purchased before registration under central excise ???? - Reply By K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ASTURI SETHI - The Reply = Sh.VAMSI KRISHNA Ji, You will have to go into depth and xray the wordings of Rule 4 (1) and Rule 9 (1) of Cenvat Credit Rules, 2004. There is not an iota of doubt that one year time limit is applicable for inputs, capital goods and input services except some relaxation for small scale, removal of capital goods as such etc. I stick to my reply as already pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted above. This is in continuation to those replies. - Reply By YAGAY AND SUN - The Reply = We are of the view that if SSI units do not avail CENVAT credit during their exemption period due to threshold limit of the turnover, then, after such period when they start paying Central Excise Duty, they can avail the CENVAT Credit. There are some good old judgments on this matter. - Reply By G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aneshan Kalyani - The Reply = However, the time limit of one year need to be considered. Thanks. - CENVAT CREDIT ON CAPITAL GOODS PURCHASED - Query Started By: - chetan rachhadiya Dated:- 24-12-2016 Central Excise - Got 13 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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