cenvat credit on plywood

[SANJEEV JADHAV]

Dear Sir,

Ours is foundry and we are manufacturing castings. We are purchasing plywoods for pattern mounting purpose and also availing Cenvat credit on plywood. We have availed some of cenvat credit of plywood in inputs as well as few invoices in capital goods. During Excise audit, department has taken objection that plywood is not eligible as input or capital goods and issued show cause notice. I required case law relating to this issue. Can any one help me by giving case law for above.

[Arun Kumar Singh]

Only those structural components which are used for foundation or making structure for support of capital goods excluded from definition of input. Structural components which are essential parts of machinery/equipment will be eligible as input. Whether a particular component is a part of equipment/machinery or a component for making structure is a question of fact and needs to be examined on case to case basis- CBE&C circular No. 964/07/2012-CX dated 2.4.2012.

AI Summary

Cenvat credit eligibility: structural components essential to machinery may qualify; eligibility turns on fact-specific assessment per circular. Whether plywood used for pattern mounting qualifies for Cenvat credit as input or capital goods. Structural components used solely to create foundations or support structures for machinery are excluded from input, whereas components that are essential parts of machinery or equipment are eligible; the classification is a question of fact to be examined case by case, with guidance in CBE&C circular No. 964/07/2012-CX.