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

 

AI Summary

Cenvat Credit Allowed for Machinery Parts Under Chapters 84 and 85, Whether Capitalized or Used for Repairs. A query was raised regarding the eligibility of taking Cenvat credit on machinery parts purchased under Chapter 84 and 85, specifically when parts are capitalized as fixed assets or debited to repair and maintenance. The respondent advised that Cenvat credit is admissible for parts used in repair and maintenance of plant and machinery. Additionally, credit is also permissible for machinery parts that have been capitalized as assets.