cenvat credit

[SHARMA NARAYAN]

Dear sir,

Can we take cenvat credit on Reinforcement Steel which is used in for preparion of Stack (Chimni) we can not take credit on cement i am sure about that but what about reinforcement steel & structure steel use for structure and plant and machinery.

AI Summary

Cenvat credit on structural steel: construction exclusion usually bars credit, but user-test may allow credit where steel forms capital machinery.
Rule 2(k) of the Cenvat Credit Rules, 2004 excludes goods used for construction of buildings or civil structures and for laying foundations or making structures for support of capital goods from the definition of "inputs," subject to an exception for construction service entries; on that basis reinforcement and structural steel used in erecting a chimney are typically ineligible for Cenvat credit. A contrary view relies on treating the chimney as a capital good and applying a user test-cited authority has allowed credit on steel items when use in manufacture is established.