Credit on capital goods

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nilesh (Querist)
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07 November 2012 Dear Expert,

we are mfg. the exempted and non-exempted products, so can we take the full credit on machinery (50% first year and 50% second year)

Machinery(Capital goods) is use for both products,

Please send the circular or case law if any.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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07 November 2012 You can take full credit since Rule 6 does not apply. (Cenvat credit of duty on capital goods is not allowable only when it is exclusively used for manufacture of final exempted products rule 6(4))

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