Cenvat credit on capital goods
vwxyz@rediffmail.com
(Querist) 26 July 2013
This query is : Resolved
In Cenvat Credit Rules,2004, Rule 4 (2)(a) provides the cenvat credit on capital goods to be taken for 50% in the year of receipt. Rule 4(2)(b) states the balance of cenvat credit may be taken in any financial year "subsequent to the financial year in which the capital goods were received in the factory" of manufacturer......
Now my doubt is if the manufacturer has not availed 50% of capital goods credit in the year of receipt of them can he not legally take the 100% [50%+50%] cenvat in the next financial year, since the words used are "subsequent to the financial year in which the capital goods were received in the factory", and not availing first 50% credit.
I request the experts to guide, with any decided cases in this regard.
Thanks & regards.
Anirudh
(Expert) 17 August 2013
In view of Rule 4(2)(b) which provides that the balance of cenvat credit may be taken in any subsequent financial year, one can take entire 100% credit in the subsequent year, if no credit had been availed in the year of receipt of the capital goods in the factory.
