Dear Sir,
Before the notification no. 3/2011-CE(NT) dated 1.3.2011 the definition of input service in cenvat credit rule 2 consisting of setting up plant, which was eliminated after the above notification.
Query: where in a already existing plant, if new model of line of plant is installed whether that shall tanta amount to setting up of plant for the purpose of input service as cenvat credit rule no.2
Regards,
K Gopal
Debate Over CENVAT Credit Eligibility for New Model Line Installation After Rule Change in Input Service Definition A query was raised regarding the eligibility of CENVAT credit for installing a new model line in an existing plant after the removal of 'setting up' from the definition of input service in the CENVAT Credit Rules. One response suggested that CENVAT credit cannot be claimed for setting up a plant and recommended availing depreciation instead. However, two other responses argued that CENVAT credit is permissible for services related to modernization, renovation, or repairs, even if the term 'setting up' was removed. They emphasized that the main definition of input service remains broad and supports credit claims for services used directly or indirectly in manufacturing. (AI Summary)
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