Cenvat credit rules clarified: works-contract composition bars inputs credit but permits capital goods and input services; refund interest allowed. Interest on delayed refund of amounts deposited under appeal is permissible under the refund-interest provision inserted by recent finance legislation. Rule 3(2) of the Works Contract Composition Scheme bars CENVAT credit on inputs for contracts under composition but does not preclude CENVAT credit on input services or capital goods; the Ministry issued a clarificatory circular. CENVAT credit on capital goods received in a given financial year is limited to fifty percent of duty paid for that financial year, and policy matters must be referred to the Board or designated divisional contacts.
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Provisions expressly mentioned in the judgment/order text.
Cenvat credit rules clarified: works-contract composition bars inputs credit but permits capital goods and input services; refund interest allowed.
Interest on delayed refund of amounts deposited under appeal is permissible under the refund-interest provision inserted by recent finance legislation. Rule 3(2) of the Works Contract Composition Scheme bars CENVAT credit on inputs for contracts under composition but does not preclude CENVAT credit on input services or capital goods; the Ministry issued a clarificatory circular. CENVAT credit on capital goods received in a given financial year is limited to fifty percent of duty paid for that financial year, and policy matters must be referred to the Board or designated divisional contacts.
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