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

 

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.