Full duty credit on capital goods

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Anil (Querist)
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16 February 2013 Sir,
We are registerd with Excise. We were selling our goods without excise due to limit of 1.50 Crore. Now we have cross the limit of 1.50 crore. We had started our bill with excise duty charged.

now, We have purchase a machine in which we pay excise duty appx. 12 lacs.

Sir, Can we take full excise cenvat of machine in this year, because after march'2013, we will start our sale without charge of Excise Duty up to 1.50 crore.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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17 February 2013 Dear Anil

As per the cenvat rule 2004 , cenvat on capital goods allowed only when you are producing and selling dutaible goods . In you will not be allowed to avail cenat credit to full as machinery being capital goods . You can do one things avail credit of 50% this year and balance credit you can avail only in next year after crossing the minimum exemption limit .

Thanks