Cenvat credit on Plate

[Tejas Gandhi]

Dear sir,

We bought the material Steel Plate which is used in fabrication - maintenance yard. Is it eligible for take cenvat credit or not ?

[Mahir S]

Sir,

There are numerous cases including Supreme court judgments allowing cenvat credit on Steel Plates used in or in relation to fabrication work.

However, allowing cevat credit on Plates used in the fabrication maintenance yard shall lead to stretching the issue too far and such cenvat credit may not be available,

[MUKUND THAKKAR]

Sir,

In addition above view further clarify that your yard is not following under capital goods or inputs so you are not eligible to take cenvat credit.

AI Summary

Cenvat credit eligibility for steel plates depends on whether use is fabrication-related or maintenance-yard non-input use. Cenvat credit on steel plates depends on their factual use: plates integrally used in or closely related to fabrication work may be eligible as inputs, while plates procured for a maintenance yard-treated as neither capital goods nor production inputs-are not eligible for Cenvat credit. Classification and the purpose of use control entitlement.