CENVAT Rules- Clarification-Regarding

CENVAT credit scope expanded to include capital goods and inputs used in manufacture, subject to use, return and documentation conditions.

CENVAT credit is available for a widened class of capital goods (including components, spares, moulds, dies, refractories) and for inputs used in manufacture, including inputs contained in waste or by products and inputs used in exempt intermediates. Air conditioners and computers qualify only if used in manufacture, not in office premises. Goods sent to job workers must be returned within 180 days or attributable credit must be debited; credit can be reclaimed on return. Credit from registered first and second stage dealers is permitted; installation is not required to claim capital goods credit, subject to a fifty percent claim limit in the initial year. Additional duty and import CVD component credits are allowed for corresponding duties, and documentary records are required.