TaxTMI 
TaxTMI 
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.
CENVAT FOR SEIZED PLANT
31 Oct 2013 
2 Replies 
1726 Views Asked by
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. (AI Summary)
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. (AI Summary)