CENVAT FOR SEIZED PLANT

[MANDAVILLI RAMAKRISHNA]

Whether cenvat available in respect of plant purchased and before

installation/ trial run, the plant was seized by the finance company

and sold to third party.

[Madhukar N Hiregange]

Credit is available if plant rcvd + used. If sold to 3rd party- 3rd p maybe eligible.

[MANDAVILLI RAMAKRISHNA]

thank you sir.,

but the 3rd party purchased from the finance company so how can they avail the cenvat credit on the plant?

AI Summary

Cenvat credit availability depends on actual receipt and use of seized plant; third parties require receipt/use to claim credit. Cenvat credit on plant seized and sold by a financier depends on meeting the receipt-and-use requirement: credit is available only where the purchaser has actually received and used the capital goods in the course of business. A third party buying from a finance company may claim credit only if it satisfies those operative conditions; purchase alone without actual receipt and use does not establish entitlement.