Cenvat availibility on software purchases

[Santosh Mali]

Cenvat credit on purchases of software for following purpose is eligible?

1) Machines controlled by computer programming

2) Operating systems installed On PC (used by departments like HR, Accounts, Administration, PPC, Dispatch, Stores and others)

3) ERP system installed on PC on above mentioned departments

Please guide

Santosh M.

AI Summary

Cenvat credit eligibility on software: machine-control software allowed; OS and ERP allowed with nexus to taxable activity.
Availability of CENVAT credit is recognised for software that directly controls machines. Operating systems and ERP software may qualify for credit only where there is a demonstrable nexus to manufacture of goods or provision of taxable services or connection to specified input-service activities (including modernization, repairs, storage, quality control, recruitment, accounts, audit, sales promotion, procurement, legal services, financing, and computer networking). Classification under the input-service head Computer Networking may apply; maintain supporting documentation to meet possible departmental objections.