Availability of cenvat credit on inputs used in the manufacture of capital goods-reg.

Cenvat credit on inputs limited to excisable capital goods and manufacturing inputs; construction and repair exclusions apply.

Cenvat credit is available only for items that are excisable and fall within the statutory definition of capital goods or inputs and are used in the manufacturer's factory. Materials like cement, angles, channels, and TMT bars used for foundations, building construction or supporting structures, and items used for repair and maintenance of capital goods, are excluded from admissible credit. Inputs must be used in or integrally connected with the process of actual manufacture; clarificatory amendment to the definition is treated as retrospective.