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.

AI Summary

CENVAT Credit Eligibility for Seized Plant Sold by Finance Company Before Use Questioned Under Rule 3. A query was raised about the availability of CENVAT credit for a plant that was purchased but seized by a finance company and then sold to a third party before installation or trial run. One response indicated that credit is available if the plant is received and used, and the third party may be eligible for credit. The original inquirer questioned how the third party could avail of the credit since the purchase was made from the finance company.