CENVAT credit on MS racks falling under CHS 73

[Yatin Bhopi]

We are manufacturer. we have recently modified our storage warehouse. We have purchase some rack falling under chapter heading 73 for keeping pallets . MS racks are not fitted in capital goods definition. Since this racks are use for keeping goods in safe and proper movement of goods, can we avail the CENVAT credit in input. Since amount involved is more than 1 Lac we want your expert advice in the matter.

AI Summary

Manufacturer Seeks CENVAT Credit for MS Racks; Experts Weigh in on Input Credit Eligibility Under Chapter 73. A manufacturer inquired about availing CENVAT credit on MS racks used in their warehouse, which fall under chapter heading 73 and are not considered capital goods. The concern was whether these racks, essential for the safe and proper movement of goods, qualify for input credit. An expert advised that while racks typically do not qualify as capital goods, their significance in the manufacturing process could allow them to be considered as inputs. Another expert suggested that CENVAT credit might be admissible if the racks are necessary for the safety and movement of goods.