Cenvat Credits on Plates used in Manufacturing of Capital Goods

[Mehul Pandya]

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

AI Summary

Cenvat credit eligibility on components used to fabricate capital goods; credit may be claimed as input or capital goods.
Plates procured to fabricate storage tanks are eligible for cenvat credit because they either become parts of the capital good (storage tank) or, when used in construction of the tank, are inputs for manufacture of a capital good; departmental practice allows treatment as input or capital good and phased posting (RG23C Part II practice of 50% in year of receipt and balance later) while maintaining system records in light of definitional changes under Notification No. 03/2011 NT.