10 July 2012
is it necessary to take registration under central excise before purchasing capital goods so that we can claim CENVAT credit of the same. or we can purchase the capital goods even before applying for registration and even then eligible to claim credit. plz specify the relevant section or rule.
11 July 2012
As per CBE&C Circular No. 88/88/94 dated 26.12.1994, during initial set up of factory machinery is received but factory has not yet come into existence as production has yet to commence. the credit will be available when factory is registered and production starts. In JR Herbal Care v. CCE (2010) 253 ELT 321 (CESTAT SMB), capital goods were received by assessee when he was working under SSI exemption. It was held that cenvat credit is available.
CAclubindia
