credit taken on Borewell & Chamber

[MITSUI PRIME ADVANCED]

Dear Sir,

Good Morning

We can take the credit on 'Making of Barewell and Chamber in Manufactring Factory Premises.

'in last excise audit auditor poin out Steel rack for warehouse its not related to earth mover then not credit taken' ----------- then we have reveral and also deposit interest..

Pl. advice.

Arjun Sachdeva

Mitsui Prime Advanced Composites India Pvt LTd.

Neemrana.

AI Summary

Company Denied CENVAT Credit for Borewell Construction; Advised to Claim Depreciation Instead A query was raised by a company regarding the eligibility of taking credit for the construction of a borewell and chamber within a manufacturing factory premises. In a previous excise audit, a similar issue was highlighted concerning steel racks for a warehouse, which were deemed unrelated to earth-moving activities, resulting in credit reversal and interest deposit. The response advised that no CENVAT credit is available for such activities in a manufacturing factory, suggesting instead to avail depreciation on the gross value.