Cenvat credit

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

one of my client is central excise registered manufacturer and they have purchased tiles and laying in the factory bathroom due to health of the workers.

Is my client is eligible for duty credit on tiles.

can explain with supported case laws.

[Ganeshan Kalyani]

Sir, should you please refer input tax credit definition which states the phrase 'in or in relation to' manufacturing activity. Whether the files is fitting into the meaning of the aforesaid phrase. No. However it is seen in the realm of taxation that if you are able to corelate the work done to have nexus with the production activity, then you may win but chances are bleak. Thanks.

[MUKUND THAKKAR]

Sir,

you are not eligable to take cenvat credit of any accessary of bathroom fitting or any other item which is not relation to manufacturing activity. what ever faciltiy is provding to your worker which has following under factory act.OR labour law.

[KASTURI SETHI]

I endorse the views of both experts.

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

thanks a lot for giving the instant response and your valuable time.

AI Summary

Cenvat credit for factory amenity purchases is generally ineligible absent a direct nexus to manufacturing activity. Bathroom tiles and laying works for worker welfare in a factory are generally not eligible for Cenvat credit because they constitute employee welfare or factory amenities rather than inputs or input services used in or in relation to manufacturing; eligibility requires a demonstrable nexus to production activity, and facilities provided under factory or labour law are treated as non-creditable.