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.

[YAGAY and SUN]

No CENVAT credit would be available on such activities in Manufacturing Factory.  It is better to avail the Depreciation on the gross value.

AI Summary

Cenvat credit denied for on-site infrastructure; claim depreciation on gross value instead to avoid reversals and interest payments.
No CENVAT credit is available for construction of a borewell and chamber within manufacturing factory premises; treat such works as capital/on-site infrastructure and claim depreciation on the gross value instead of service tax credit to avoid disallowance, reversal and interest liabilities noted by the auditor.