Mega project Fresh investment incl. CENVATE taken Amount ?

[Amit Tapadia]

Even CENVATE credit taken Amounts (P&M) benefit once taken, Can Co. again claim as Fresh Investment under PSI 2013 Scheme ? Which criteria SICOM following while benefit provides agst PSI scheme. "Investment which reflect under Sch-5 under Fixed Assets". Or " Payment made to Supplier agst FA". Please clarify

[Ganeshan Kalyani]

Sir, in order to develop the backward area, government announces benefits like VAT exemption, deferment payment of VAT, tax retention etc. The Package Scheme of Investment is one such policy made available by government. The benefit is based on the capital investment made. The quantum of VAT benefit is based on capital investment amount. Generally once the policy is announced and investments made after that date such investments qualify for benefits. Hence I am of the considered view that benefit on already installed asset would not qualify for such exemption. Thanks.

AI Summary

Eligibility for Investment Incentives precludes previously installed assets with claimed CENVAT credit from fresh PSI scheme benefits.
PSI benefits depend on capital investment made after the scheme announcement and are calculated on that investment amount; assets already installed and for which CENVAT credit has been claimed do not qualify as fresh investment for entitlement to PSI benefits.