cenvat for new company

This query is : Resolved

agarwal ankur (Querist)
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21 March 2008 hello
WISH ALL OF U A VERY VERY
HAPPY HOLI

A Public ltd company is putting up a plant to manufacturing News print and writing printing paper.
The company has started the construction of building & installation of machinery for the purpose from may 2007.
The building has been constructed and the installation of the Machinery is likely to be completed by June/July 2008 only.
The company has availed Cenvat on the stenth of the Invoices of the Machinery purchased.

Query
can we avail 100% cenvat on machinery installing during 2007-08 for clearence of our production during 2008-09 or we can take benfit of 50% in 2008-09 and balance in the remaining period

We would also request to clarify of our entiltlment to avail cenvat credit during 2008-09 to the extent 50% or 100%

THANKS

chetan soni

chetan soni (Expert)
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21 March 2008 You Can claim excise credit on capital goods procudred for manufacturing the goods to the extent 50% in the year of acqusition & balance in any subsequent financial year as per Cenvat Credit Rules. There is no restriction that the balance credit should be utilised in next financial year itself.

agarwal ankur

agarwal ankur (Querist)
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23 March 2008 hello sir
my query is that can we claim 100% cenvat in the f/y 2008-09 or we have to claim only 50% in 2008-09 bcoz we have purchased the machinery in 2007-08 but no production has been started till date. moreover we r eligble any cenvat in the f/y 2007-08?

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CH.LN.Sastry,MCom, LLB, M.Phil

CH.LN.Sastry,MCom, LLB, M.Phil (Expert)
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16 September 2009 if you purchased the Capital Goods in the year 2007-08 and you can take 50% of the Credit in 07-08 and the remaining in 08-09. Then you can avail 100% credit in 08-09. (if you take credit of 50% in 07-08 only)