MS PLATE CHANEL AMGEL BEAM COLUMN

[SHARMA NARAYAN]

Dear sir,

can we take cenvat credit on MS PLATE, ANGEL , CHANE, BEAM, COLUMN which is used in MECHANICAL DEPT for support to machine of making structure of machine for material handling in RG23A PART-II C

Pls Reply

[Rajagopalan Ranganathan]

Sir,

As per rule 2 (k) (B) of Cenvat Credit Rules, 2004-

any goods used for -

(a) construction or execution of works contract of a building or a civil structure or a part thereof; or

(b) laying of foundation or making of structures for support of capital goods,

except for the provision of service portion in the execution of a works contract or construction service as listed under clause (b) of section 66E of the Actare excluded from the definition of inputs. Therefore you are not eligible to avail the credit of duty paid on MS PLATE, ANGEL , CHANE, BEAM, COLUMN.

[KASTURI SETHI]

I support the views of Sh.Rajgopalan Ranganathan, Sir.

[YAGAY and SUN]

Please check

2016 (1) TMI 917 - CESTAT NEW DELHI M/s. Monnet Ispat & Energy Ltd. Versus Commissioner of Central Excise, Raipur

2015 (1) TMI 804 - MADRAS HIGH COURT The Commissioner of Central Excise Versus M/s. India Cements Ltd.

[SHARMA NARAYAN]

Dear sir,

the same material we used to make storage tank in factory for manufacturing process

the can we take cenvat credit if yes in which register RG23A PART-II or RG 23A PART C

Mukesh

[Rajagopalan Ranganathan]

Sir,

As per rule 2 (a) A (vii) of Cenvat Credit Rules, 2004 storage tank is a capital goods. But I feel that this definition has been incorporated when you buy a ready made tank on payment of duty. If you construct a tank using the raw materials mentioned by you within your factory no duty is payable since you are captively consuming the tank. Therefore the question of availing the credit of duty paid either on the tank or the inputs consumed in the construction of the tank does not arise. From the narration made by you I infer that you are constructing the tank captively using the inputs mentioned by you.

[SHARMA NARAYAN]

Sir,

can we takc cenvat credit or not pls suggest

Mukesh

[YAGAY and SUN]

Yes you can avail the CENVAT credit on inputs which were being used in manufacturing of Storage Tank. It is settled legal position.

[Ganeshan Kalyani]

In my view the credit is eligible.

AI Summary

Cenvat credit exclusion for construction-related goods bars credit on metal plates and beams used as machine supports in manufacturing.
Rule 2(k)(B) of the Cenvat Credit Rules excludes goods used for construction, works contracts, laying of foundations or making structures for support of capital goods from the definition of inputs; consequently duty paid on MS plate, angle, channel, beam and column used as supports for machines is not eligible for Cenvat credit. Separately, a storage tank acquired ready-made may be a capital good, but where fabricated captively within the factory no duty is payable and credit on duties for such captive construction does not arise.