Capital goods credit, Central Excise

[manish kumar]

Sir,

An assessee has taken Capital goods credit after one year. Can we allow 100% credit or allow 50% credit or disallow all capital goods credit. Please suggest me with proper authorities .

Posts / Replies

[KASTURI SETHI]

Restriction of availing credit within one year was for inputs and input services and not for Capital Goods. If you could not take 50 % in first year, in the next year you could take 100%. Case laws can be traced out. We are talking of pre-GST era.

[Ganeshan Kalyani]

I am also of the view, that in case of capital goods credit not taken in the year of purchase, then in the next month 100% credit can be taken.

[DR.MARIAPPAN GOVINDARAJAN]

You can take 100% credit if you did not take 50% in the first year.