Cenvat on unutilised steel purchase for mfg of capital goods

[Ramesh Patel]

If mfg buy steel to mfg capital goods to be used for production purpose.  But due to financial or other difficulty pospond mfg of capital goods. Wheather mfg can avail cenvat on unused steel lying in factory,  purchased for capital goods. 

[SHIVKUMAR SHARMA]

Dear Mr.Ramesh Patel

Yes,You can avail cenvat credit on steel lying in stock  at your factory premise which you have purchased for manufacturing of  Capital goods.

SHIVKUMAR SHARMA

[Ramesh Patel]

Thank you, Shivkumar Sharma

If you can give me section/rule or case law applicable to this situtation. It will be more helpful. 

AI Summary

Cenvat credit on inputs may be availed for unused steel purchased for capital goods, subject to eligibility requirements. The manufacturer may avail Cenvat credit on steel lying in stock at the factory premises which was purchased for the manufacture of capital goods but remains unutilised due to postponement; this advisory confirms eligibility to take credit on such inputs subject to the usual cenvat documentary and eligibility requirements.