CENVAT credit eligibility on Steel plates used to repair work of Storage Tanks

[Yatin Bhopi]

Dear experts

We are manufacturer of chemicals. to Store the finished goods and raw material we have storage tanks. these storage tanks need time to time repair and maintenance work since our finished goods and raw material of highly hazardous in nature. mainly we need steel plates (Chapter 72) for repair work ( patch work).

After going through definition this item is not covered under capital goods definition. further this item is also excluded from input definition

My query is: Is CENVAT credit available in input ? (without any litigation)

AI Summary

Cenvat credit eligibility for repair components affirmed where plates form integral parts of capital storage tanks and are duty-paid.
Steel plates used to repair or form covers of storage tanks are treated as integral components of those tanks and, when duty-paid and used in the factory or in relation to manufacture, qualify as capital goods/components eligible for CENVAT credit. The two core conditions for credit are payment of duty on the goods and use in or in relation to manufacture; credit should not be denied for mere procedural lapses. While some argue a narrow reading excludes plain plates, the dominant view relies on nexus and functionality to allow credit.