Dear Experts,
We are manufacturers of Sugar. At the time of installation of machinery we have fabricated 2 storage tanks on our own and purchased Plates for the same. Can we take cenvat credit on this plates or not ? If yes we should take the same in A-II or C-II (50%). Pl. give your expert suggestions with relevant notification or circular or any other reference if possible.
Thanking you
Cenvat Credit Allowed on Plates for Storage Tanks as Capital Goods; 50% Credit Each Year A manufacturer of sugar inquired about the eligibility of Cenvat credit on plates used to fabricate storage tanks, which are considered capital goods. Experts in the forum confirmed that Cenvat credit is permissible for such plates as they are integral to the storage tanks. The credit can be taken as capital goods, with 50% in the current year and the remainder in the next financial year. It was noted that maintaining statutory records is no longer required, but records should be kept in a computer system for audit purposes. The discussion highlighted the importance of understanding the definitions and rules regarding inputs and capital goods for Cenvat credit eligibility. (AI Summary)
TaxTMI 
TaxTMI 
