cenvat credit on service tax for installation of machinery in manufacturing of excisable as well as exempted product

[Mehul Pandya]

Sir,

We are manufacturing excisable as well exempted product. We have received one service invoice for the errection, commssioning and installation of capital goods including value of that capital goods. Hence my query is that can we avail cenvat credit for the same .?? Is there any notification or else in supporting of the same because cenvat volume is too high. Pl. advice me.

Thank you

AI Summary

Cenvat credit on capital goods installation: creditability subject to capitalization or proportionate reversal under prescribed options.
CENVAT credit on erection, commissioning and installation services for capital goods is governed by whether those costs are capitalized and by the CENVAT reversal/options framework: capitalized installation costs are treated as part of the capital asset and generally creditable unless used exclusively for exempted goods, while inputs/input services used for both taxable and exempted activities require either separate accounts or adherence to prescribed proportionate payment options, with the chosen option applying for the remainder of the financial year.