27 February 2009
You have two option- either dont pay duty till tunover of Rs. 1.5 crore and dont take cenvat; or pay duty and take cenvat. Once you choose and option of paying duty, you cannot revoke it till the end of the financial year. Thus if you are not paying duty, no need to take credit and worry about dates of purchase etc. Once you cross the limit of 1.5 crores, you can start paying duty and taking credit. Regarding capital goods installed in factory, you can take credit now and utilise it for payment of duty when you cross the limit of 1.5 crores.
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