Cenvat credit on setting up plant

[Krishan Gopal]

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

AI Summary

Cenvat credit admissibility remains for services used in or related to manufacture despite deletion of 'setting up'.
Deletion of "setting up" from the inclusive limb does not prevent CENVAT credit where a service is used directly or indirectly in or in relation to the manufacture of final products and their clearance; credits remain admissible except for services specifically excluded by the statutory exclusion limb, and the amendment was intended to avoid overlap with exclusions rather than to deny credits for services used in establishing plants.