we purchased plant and machinery from Gujarat and paid Excise duty on the above purchased asset. The above said machine was used to produce Bislery Liquir,which is again Excisable product as per state Excise Act. Now can i Claim Input cenvat credit, which is paid on the machinery against the Excise duty, on the sale of Liquer?
27 February 2008
AS PER CENTRAL EXCISE ACT ANY DUTY PAID ON CAPITAL GOODS AS CENVAT ,CREDIT CAN BE TAKEN IN THE YEAR OF PURCHASE SUBJECT TO 50 % OF DUTY AND THAT DUTY CAN BE ADJUSTED AGAINST THE EXCISABLE GOOODS MANUFACTURED
27 February 2008
you can claim the input of excise duty on plant & machinery(capital goods)at the rate of 50% in the first year and remaiing in subsequent year.and you have to value the plant& machinery net of excise input credit .
CAclubindia
