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Availment of Cenvat Credit on Capital Goods

Central Excise - Started By: - HImanshu Singh - Dated:- 10-9-2016 Last Replied Date:- 12-10-2016 - Respected Members, I would Like to ask a query relating to CCR on Captal Goods:1. A Factory Purchased the duty paid capital goods during the period when it was availing an exemption, due to exemption factory did not availed the CCR on capital goods as its final products were Exempted.Subsequently Govt. withdrew the said exemption and all the final products become duitable, in that case whether fact .....

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be time limit for the same?Please give your valuable comments on the same. - Reply By YAGAY AND SUN - The Reply = Now in both the scenarios you can avail the CENVAT credit provided capital goods should not be used exclusively in manufacturing of Exempted Goods. It is now a settled legal position. - Reply By HImanshu Singh - The Reply = Dear Sir, Thanks for your Valuable reply.1. Capital goods purchased in 2011 during which exemption was available and Govt withdrawan the exemptin in 2015, can Ce .....

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- Reply By PRANAB PANDA - The Reply = in this case you can avail 100% Cenvat credit on capital goods. - Reply By KASTURI SETHI - The Reply = In support of the views of M/s. Yagay and Sun, experts, read para no. 4.1.5 (i) of CBEC letter DOF No.334/15/2014-TRU dated 10.7.2014 - Reply By CS SANJAY MALHOTRA - The Reply = Dear Friends, I have difference of opinion here. CENVAT Credit shall not be available on Capital goods under Rule 6(4) if the same are used exclusively in the manufacture of Exempte .....

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ause when the capital goods was purchased the manufacturing was of exempted goods exclusively. It is only after exemption was withdrawn the manufacturing started of both exciseable and non excisable. Thanks. - Reply By MADAN RAHEJA - The Reply = Dear Sir, In confirmation of views expressed by Sh. Sanjay Malhotra, please refer to decision of Tribunal in the case of M/s Andhra Polymers Ltd reported at 2016 (332) E.L.T. 831 (Tri. - Bang.) = 2015 (10) TMI 1684 - CESTAT BANGALORE - Reply By CS SANJAY .....

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with your views as additional legal information which also fits into the query and another aspect interconnected with the reply sought for. Your reply has enriched my knowledge also. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Sh. Kasturi ji, Case law shared by Madan ji stands valid till the Notification No 13/2016-CE dated 01.03.2016 has come into effect. I have personally represented this case to CBEC through various council when budget exercise for 2016-17 was going on to provide sunset .....

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it was not allowed. When exemption was withdrawn then the provision allows to take propotionate credit. But since initially the condition was not fulfilled and later on the condition got satisfied the credit would be reduced for the differnatial period. This is my view. Welcome views of expert on this. Thanks. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Friends, When the unit is availing exemption, then the Capital Goods sourced are capitalised in books of accounts by the assessee and accor .....

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eligible then the tax portion is capitalised along with the capital goods value. The querist have to check this very crucial point, otherwise all the discussion would be of no use. Thanks. - Reply By HImanshu Singh - The Reply = Dear Sir, Factory had not Claimed the Depreciation as the factory is wholly owned govt factory.If proportaniate CCR is to be allowed, whether any case law in supporting of the same? - Reply By Ganeshan Kalyani - The Reply = Sir, not the factory but the capital goods. Whe .....

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