Canvat Credit, Central Excise

[Deepak Birla]

As solar equipment is exempt from excise duty. Supplies are being made for solar equipments to solar power gneration projects as well as other than solar power generatin projects by a manufacturer.

Further as per Rule 6(vii) of CCR, 2004, Cenvat reversal is not required for input used in solar equipments supllied to Solar power gneration projects

Question is whether credit of Excise duty paid on capital goods can be availed?

Posts / Replies

[Pradeep Khatri]

If the capital goods are used exclusively for manufacturing of exempted goods, then, CENVAT credit on Capital goods cannot be claimed.  Please claim depreciation as per Income Tax Provision on such Capital Goods.