Cenvat Credit

This query is : Resolved

Dinesh Yadav (Querist)
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14 February 2009 Dear Sir,

Kindly clarify whether cenavt credit of excise duty paid on capital goods is allowed on capital goods acquired during initial setup of factory, machinery is received but factory has not yet come into existance and/or got regitered as production has yet to commence.

Is there any legal reqirement to get the registration under central excise before placing purchase order of caiptal goods/inputs although factory has yet to commence production.

Kidly Clarify the matter at your earliest and oblige

Arbind Aggarwal

Arbind Aggarwal (Expert)
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23 February 2009 Cenvat credit can be taken and utilised after registration only but it does not mean that u can not buy goods without taking registration.

For specific and detailed reply mail at: arbindaggarwal@yahoo.com