Cenvat Credit on Capital Goods

[vikas anand]

Dear All,

 

As per Cenvat Credit Rules, 2004 capital goods means the goods falling under chapter 82,84, 85 & 90and its components, spares and accessories of goods specified at (i) and (ii).

 

It means, if we procured any components, spares and accessories of goods for the initial goods procured even though it may fall in a different chapter, it is still eligible for Cenvat Credit under the capital goods definition?

 

Please advise...

 

Regards

Vikas Anand

 

[Rajagopalan Ranganathan]

Sir,

Any components, spares and accessories of goods which are parts of the capital goods duty paid on such components, spares and accessories of goods can be availed as capital goods.

[vikas anand]

Sir,

Even though it may falls in a different chapter and succeeding years for maintenance of Initial goods procured?

[Rajagopalan Ranganathan]

Sir,

The answer to your query is yes.

[Ganeshan Kalyani]

Yes the credit is eligible.

[KASTURI SETHI]

I support the views of both experts.

[Mahir S]

Yes , the views expressed above are correct.

[YAGAY and SUN]

Yes, it is settled legal position that CENVAT credit shall be available on the components, spares and accessories of the capital goods of any C.E.Tariff Head.

[Ganeshan Kalyani]

Yes the credit is eligible.

AI Summary

Cenvat credit on capital goods: components, spares and accessories qualify for credit even if under different tariff heads.
Whether Cenvat credit is available on components, spares and accessories of capital goods classified under different tariff headings: parts, components, spares and accessories that form part of a capital good and on which duty has been paid are to be treated as capital goods for credit purposes, and this entitlement extends to items procured both at initial acquisition and in subsequent years for maintenance of the original capital goods.