Availment of Cenvat Credit on Repairing Charges of Capital Goods

[SURYAKANT MITHBAVKAR]

Our Customer had Send machine for Repairing & Modification. We charged them modification charges including  new spares used for modification with Excise duty .

Can our customer avail cenvat credit for the above.

[YAGAY and SUN]

Eligible as in relation to manufacture, provision of taxable services.

Yes, the Excise CENVAT credit on repairs and modification of capital goods can be claimed by your customer in case the capital asset is being used in relation to manufacturing process.

Thanks

S.R. Bansal

 

AI Summary

Cenvat credit on repairs of capital goods permitted where the asset is used in manufacturing or taxable services.
Cenvat credit on excise duty charged for repair and modification charges (including new spares) of capital goods is available where the capital asset is used in relation to manufacture or for provision of taxable services; entitlement depends on the functional nexus between the capital asset and the taxable activity.