Credit Taken on Machinery Part under Chapter 84 & 85

[MITSUI PRIME ADVANCED]

Dear Sir,

Good Afternoon

if we are buying Machinery Parts from local and Imported vendors under chapter heading 84 & 85 some goods we will going to capitalization under Fixed Assetss in such case we such case we can take credit if Machiner part debit to Repair & Maintance  and some capitalization.

Pl. provide your good suguation

 

Thanks & Regards

Arjun Sachdeva

Mitsui Prime

 

[PAWAN KUMAR]

If the subject parts is to be used in repair & maintenance of plant & machines, Cenvat credit would be admissible as per my view. The other machines which you have capitalized as assets, cenvat credit would also be admissible.

 

AI Summary

Cenvat credit admissibility for machinery parts affirmed where parts are used for repairs or capitalized as fixed assets. Admissibility of Cenvat credit on machinery parts is recognized both when parts are used for repair and maintenance of plant and machinery and when parts are capitalized as fixed assets, indicating that such inputs may qualify for input tax credit subject to governing rules and compliance requirements.