Cenvat Credit available of Rod of Civil Construction

[Samik Chaudhuri]

Sir

We are manufacturing Co, can we avail cenvat credit of Rod of New Construction of Factory.

Please suggest me .

With thanks andregards

Samik Chaudhuri.

[Rajagopalan Ranganathan]

Sir,

Since you have stated that the rod is used for civil construction as per rule 2 (k) of CENVAT Credit Rules, 2004any goods used for -

(a) construction or execution of works contract of a building or a civil structure or a part thereof; or

(b) laying of foundation or making of structures for support of capital goods,

are not treated as inputs and hence duty paid on such rods are available as credit.

[DR.MARIAPPAN GOVINDARAJAN]

CENVAT credit cannot be availed for the rod as well explained by Shri Rajagoapalan Sir.

[YAGAY andSUN]

Dear Samik,

It's rod or Road? But both are out of Purview of CENVAT credit. 

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Cenvat credit exclusion for construction materials: rods used in civil construction fall outside input credit entitlement. The forum discussion centers on whether rods used for civil construction qualify for CENVAT credit. Contributors invoked the CENVAT Credit Rules and the exclusion for goods employed in construction or works contracts, and the prevailing view in the replies is that rods used in civil construction are outside the scope of inputs and CENVAT credit is not available for them.