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Cenvat Credit issue at the time of Registration

Central Excise - Started By: - CA. Varun Arora - Dated:- 2-12-2015 Last Replied Date:- 9-12-2015 - Dear Experts,Please resolve my queryIn the first year I purchased raw material and capital goods and cleared material around of ₹ 120 lakhs, Now I want to get registeration under Central Excise.At the time of registeration There was some stock lying in the premises in the shape of final product and raw material And I am Eligible for cenvat credit on Raw material which is lying in the premises .....

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next question is that Excise officer is saying that If you will take cenvat credit of Capital goods then in the next year You have to pay duty from the day one means benifit of value based Exemption 150 lakhs will not be availabe to you.Thanks in advance . - Reply By KASTURI SETHI - The Reply = Dear Varun Arora Ji, Cenvat Credit is admissible as per Rule 3(2) of Cenvat Credit Rules, 2004 which reads as follows:-   Notwithstanding anything contained in sub-rule (1), the manufacturer or prod .....

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r with a copy to the jurisdictional A.C./D.C.24 hours in advance along with the details of stock held by them (assessee) on that date.(date of registration). Regarding the last question, I am of the view that SSI exemption cannot be denied next year and also go through Rule 4(2)(a) of Cenvat Credit Rules, 2004 in full. Peruse Explanation also. - Reply By YAGAY AND SUN - The Reply = Dear Varun, For your kind information. Capital goods purchased prior to obtaining registration - Cenvat credit avai .....

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,40,720/- on 10.3.2007 on the capital goods purchased during the month of June 2006 and remaining amount of 50% Cenvat credit of ₹ 2,44,538/- was availed on 10.4.2007. Capital goods were installed and commissioned in June 2006. During March 2007 the respondents had not manufactured any dutiable goods for the financial year 2006-07. The demands were confirmed by the adjudicating authority but the Commissioner (Appeals) dropped the demand. Aggrieved, the Revenue is before the CESTAT. The Rev .....

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AI wherein it was held that the assessee is eligible to take credit with reference to the dutiability of the final product on the date of receipt of capital goods were received. It was, therefore, submitted that the order of the lower appellate authority be set aside. The respondent assessee submitted that the case law cited by the Revenue representative is not applicable to this case as the issue before the Tribunal in that case is of determination of relevant date for eligibility of Cenvat cre .....

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stration and payment of Central excise duty is exercised under notification no. 8/2003? Ans. Yes, para 2(iii) and 2(iv) of Notification no. 8/2003-CE., dated 1.3.2003. The SSI unit can take credit of duty paid on capital goods which can be used after crossing the 100 Lakhs full exemption limit. It was also submitted that on similar facts in the case of Progressive Systems vs. CCEx., Bangalore, 2009 (8) TMI 591 - CESTAT, BANGALORE it was held that as per CBEC clarification, SSI units can accumula .....

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ssions made by both the sides and as per the query sought from the department, the department clarified that in the case of value based exemption notification, the unit can take the credit of duty paid on capital goods, which can be used after crossing the full exemption limit and on the similar facts, the issue before the Tribunal was that whether the assessee is eligible to avail Cenvat credit on capital goods procured by the assessee during the year 20.06.2007. Wherein it was held that the as .....

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