Cenvat credit availment on inputs used for assembling storage tank

[Asked by Guest]

Dear Sir,

We are a paint mfg co, pleas advise whether we can avail cenvat credit of the materials i.e. Inputs used for assembling storage tank which is used for storage of solvents, water used in the manufacturing process. Please give us any references regarding this.

AI Summary

Cenvat credit on capital goods permitted where storage tanks are essential to manufacture, subject to eligibility under circular guidance.
Cenvat credit may be claimed on inputs used to assemble a storage tank for solvents and process water where the tank qualifies as a capital good under Rule 2(a) of the Cenvat Credit Rules, 2004; Board Circular No.267/11/2010-CX (para 3), based on a Supreme Court decision, and tribunal practice applying the essentiality principle, support admissibility, subject to case-specific eligibility verification.