Excise Registration

[RAMASWAMY KRISHNAIYER]

We are having excise registration  for factory premises.  We are leasing a portion of land to another party for 50 years for putting up utility (power transmission)..  Ownership of land continue with us only.

The utility facilities are constructed by us under "Build and Transfer" basis.

Pl clarify:-

whether cenvat credit on capital goods/inputs/input services for construction of facilities (bills are in our name) , can be availed.

Whether leasing of land out of registered premises, to be informed to Dept, whether said area to be deregistered.

AI Summary

CENVAT credit entitlement depends on nexus to production; departmental intimation required when part of registered premises is leased.
CENVAT credit on inputs, input services and capital goods for construction of utility facilities is generally disallowed for civil construction unless a clear nexus exists between the utility (power transmission) and the manufacture of dutiable final products; ownership does not bar claim. The department must be intimated and the factory layout plan changed when part of registered premises is leased for utilities; credit may be disallowed if consumption by the manufacturer and nexus to production are not established.