Excise on capital goods

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2012 one of my client having a business of cutting polishing and processing of granite marbles has a turnover below the limit as specified under excise laws.
he has purchased a machinery of Rs.20lakhs .
however he has registered himself under excise
can he claim the cenvat credit on prchase of the said capital goods ??
and will that cenvat credit be carried forward ??
pls help as soon as possible ..
thankig you in advance

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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20 February 2012 As such there is no restriction in taking credit of capital goods unlike in case of inputs and input services it will be utilised for payment of excise duty if used in manufacture of excisable goods....