Erection Commissioning & Installation in a plant being set-up

[Vinay Kunte]

Is the Cenvat Credit of Input service recceived in relation to the erection, installation & commissioning of machinery in a new factory being set up is available?

If yes, then is the credit available if the said service is part of the 'works contract' given for the subject seting up of the plant in a taxable teritorry?.

AI Summary

Cenvat Credit Eligible for Erection Services in Works Contracts, Excluding Construction or Foundation Work A query was raised regarding the eligibility of Cenvat Credit for input services related to the erection, installation, and commissioning of machinery in a new factory. Specifically, it asked if such credit is available when these services are part of a 'works contract' in a taxable territory. The response clarified that erection services qualify as input services eligible for Cenvat Credit, provided they do not pertain to the construction service portion or the laying of foundations or structures for supporting capital goods. This eligibility applies even when these services are part of a works contract.