Modvat on Lift to be used Material Movement

[Bhairob Chandra Bor]

Dear Sir,

we are going to install 2 no's of Lift , one for moving raw materials from Basement to ground 1st floor (shop floor). Supplier will charge excise duty as applicable. kindly advice for the following:

1. can we availed the modvat of this excise duty charged by the supplier?

2. can we availed the vat as a input tax ( if the supplier is from Haryana state and charged vat as per applicable rates)?

3. can we availed the service tax to be charged on installation of lift one?

3. what will be the case for 2nd lift which will be used for passenger lifting from ground floor to 3rd and 4th floor office?

All documentation like PO, Bills etc will be separate for both the cases.

Thanks and Regards,

BCB

AI Summary

Cenvat credit for industrial lifts: material-handling lifts used in the factory permit credit and installation service tax input.
A lift specifically designed and used to move materials within the factory qualifies as a capital good eligible for CENVAT credit and input tax credit where documentary records show distinct factory use; partial use for manufacture is sufficient. Service tax on erection and installation of such lifts is also creditable. Passenger lifts require assessment of whether their use is in relation to manufacturing-office-located lifts within factory premises may be treated as used in the factory and permit credit.