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Mukesh Pareek (service)     31 August 2011

Cenvat credit on capital goods

Can we avail cenvat credit 50% on capital goods immediatly after receipt of the same or it will be available only when capital goods are capitalised.


 11 Replies

rahul.p.bha (service)     05 September 2011

the cenvat credit rules 2004 state that the credit is to be takn on receipt an on putting ot to use in the manufacture of the dutiable goods 

dhiraj aggarwal (TAXPOINT (Director) 9829551008)     20 September 2011

As per Rule 2(a) of CCR, 2004 & Apex court decision in case CCE v. Jawahar Mills Ltd (2001) 132 ELT , that for availing of Cenvat Credit the goods need not be used for production of final product or used in process of any goods for manufacturing. the only requirement is that the said goods should be used in the factory of the manufacturer.


In simple words we can say once capital goods received in factory for use or service provider. after unpack for using it can avail the CENVAT Credit.

Mukesh Pareek (service)     20 September 2011

may i get your reply in Yes or No.

dhiraj aggarwal (TAXPOINT (Director) 9829551008)     21 September 2011

yeah, u can take cenvat after receiveing for use of goods. but it should be used also

Sachin Agarwal (Propritor)     22 September 2011

Dear Mukesh, 

                            you can take CENVAT Credit on Capital Goods if they are unpacked and put them for use. whether these are used or not. 



Sachin Agarwal CA LLB 

Contact No. +91 9910822027

Email id :- sachinagarwalcallb@gmail.com

Mukesh Pareek (service)     26 September 2011

Thanks a lot  Mr.Sachin Agarwal & Mr.Dhiraj Agarwal. 

rahul.p.bha (service)     26 September 2011

provided they are not used exclusively in the manufactyre of the exempted goods or services

provided they dont claim depreciation  in the income tax on that part of the capital goods which constitutes cenvat credit

rahul.p.bha (service)     26 September 2011

amendment : the citation may not be applicable for the services part

sanjay kumar singh (proprietor)     23 November 2011

who is liable to pay er5 and er6 excise return

dhiraj aggarwal (TAXPOINT (Director) 9829551008)     24 November 2011

central govt has notified certain goods. on these goods manufacturer shall submit statement of principal input in ER-5 and ER-6 annually and monthly.

R.K.RENGARAJ (GM/INDIRECT TAXES)     09 December 2011

Dear Sir,

First of  all kindly kindly see that your machinery is coming under the eligibility of CEnvat credit and treated as "capital goods" as per the CCR, 2004.  Of course, 50% of cenvat credit can be availed in this accounting year and balance in next year.  Such capital goods are used in the factory of the manufacturer of the final products or for providing output service.


As correctly said, depreciation part, the cenvat value should not be included under sec 32 of Income Tax Act,


Rengaraj M.Com., MBA, LL.B

GM/Indirect Taxes

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