CENVAT Credit Rules,2004

This query is : Resolved

sonal (Querist)
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25 October 2010 Rule 11 of Cenvat credit rules:-

An assessee was not availing SSI exmption. At tht tym he has taken cenvat credit on capital goods n utilized part of the credit availed.

Now, he is availing the SSI exemption.
Wat will b d treatment of Cenvat credit??

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CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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25 October 2010 I think input credit availed will be paid back on the stock appearing in the begining , when it was deceided to avail the SSI exemption.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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26 October 2010 Since the credit is of capital goods the same maybe retained and once you cross the exemption limit the same can be utilised. This is for the reason that the restriction on capital goods credit is only if exclusively used for manufacturing of not dutiable goods. In this case when he was manufacturing excisable goods he availed the credit therefore can be carried forward forever or till CG is in use.

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