Cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2013 As solar equipment is exempt from excise duty. Supplies are being made for solar equipments to solar power gneration projects as well as other than solar power generatin projects by a manufacturer.

Further as per Rule 6(vii) of CCR, 2004, Cenvat reversal is not required for input used in solar equipments supllied to Solar power gneration projects

Question is whether credit of Excise duty paid on capital goods can be availed?

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

21 September 2013 If final product is exempt from excise duty then cenvat credit will not be admissible on input, input service and capital goods.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2013 Thanks for reply.

You are right as per Rule 6(4).But according to Rule 6(6) if goods supplied to solar power generation plant then Rule 6(1) to (4) is not applicable.

In our case we are covered in Rule 6(6).

then, What is your view whether we can take credit of capital goods or not.

Upgrade to CAclubindia Pro. Subscribe Now!