Eligibility of CENVAT credit

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..... Eligibility of CENVAT credit
Query (Issue) Started By: - VAMSI KRISHNA Dated:- 29-11-2016 Last Reply Date:- 30-11-2016 Central Excise
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Central Excise
Dear All, Assessee availed benifit of Notification 1/2011 central excise dated 1/mar/2011 my doubt is "whether assessee can take CENVAT credit paid on CAPITAL GOODS"?????? In aforesaid notification specifical .....

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..... ly said that if assessee taken CENVAT on 'inputs and input services' then that assesse is ineligible to avail this benifit. Aforesaid notification is silent about CENVAT on capital goods. please guide me?????? Thanks in advance Reply By Rajagopalan Ranganathan: The Reply: Sir, If the capital goods are exclusively used for manufacture of excisable goods in respect of which exemption und .....

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..... er Notification No. 1/2011 is availed then you cannot avail the credit. If the capital goods are used for manufacture of both exempted and dutiable goods then the credit can be availed. Reply By Suryanarayana Sathineni: The Reply: Dear Friend, With due respects to the views expressed by Shri.Rajagopalan Ji, I am of the view that the subject Notification does not put any restriction on availment .....

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..... of cenvat credit on Capital Goods since , it talks about restriction on availing credit on inputs and input services. Further, the subject notification is not an absolute exemption and it is only a conditional exemption and hence the restriction of the credit on capital goods will not apply for availing this notification. However, as stated by our learned friend, Shri. Rajagopalan Ji, if the sa .....

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..... id Capital Goods are exclusively used for manufacture of any exempted goods, then you cannot avail such credit before TWO years as per the latest provisions of Cenvat Credit Rules,2004. Best Regards Suryanarayana
Discussion Forum - Knowledge Sharing .....

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