TaxTMI 
TaxTMI 
Dear all '
Pls suggest
can we take cenvat credit in capital item for ch heading 73-74
and electric cable Dg set
and HDPF pipe for inlet and out let water for boiler and industrial use
cenvat credit
29 Nov 2016 
2 Replies 
1144 Views Asked by
Cenvat credit classification determines whether items qualify as capital goods or input credit; low-value items may be treated as inputs.
Cenvat credit eligibility turns on classification under the Cenvat Credit Rules, 2004: items falling within the definition of capital goods (notably goods under chapters such as 82, 84 and 85) and their spares/accessories qualify as capital goods credit; items not so covered must be assessed as inputs. A Budget amendment permits treating low-value capital goods as inputs for full credit. The enquirer should map each item to the relevant chapter/classification, determine capital good or input status, and then apply the low-value rule where applicable. (AI Summary)
Cenvat credit eligibility turns on classification under the Cenvat Credit Rules, 2004: items falling within the definition of capital goods (notably goods under chapters such as 82, 84 and 85) and their spares/accessories qualify as capital goods credit; items not so covered must be assessed as inputs. A Budget amendment permits treating low-value capital goods as inputs for full credit. The enquirer should map each item to the relevant chapter/classification, determine capital good or input status, and then apply the low-value rule where applicable. (AI Summary)