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?.

[Madhukar N Hiregange]

The erection services would be eligible as input services as long as they are not relating to the service portion of construction or for laying foundation/ structures for support of capital goods.

This would be eligible even if it is a works contract as per the definition of input services.

AI Summary

Cenvat credit availability for erection and commissioning services is permitted unless tied to construction or foundation work.
Erection, installation and commissioning services for machinery are eligible for Cenvat credit as input services provided they do not relate to the service portion of construction or to laying foundations or support structures for capital goods; such services remain creditable even when supplied as a works contract.