STORAGE TANK CREDIT

[SHARMA NARAYAN]

Dear sir.

we purchase various storage tank

ALKALI MEASURING TANK-

SMBS DOSING TANK

ANTI SCALANT DOSING TANK

IN CH HEADING 73090090

CAN WE TAKE CENVAT CREDIT IN INPUT OR CAPITAL GOODS

AI Summary

Eligibility to Claim CENVAT Credit on Storage Tanks Confirmed Under Rule 2(a)(A)(vii) of CENVAT Credit Rules 2004 A query was raised regarding the eligibility to claim CENVAT credit on various storage tanks under Central Excise rules. The tanks in question include alkali measuring, SMBS dosing, and anti-scalant dosing tanks. Respondents clarified that according to Rule 2(a)(A)(vii) of the CENVAT Credit Rules 2004, storage tanks are classified as capital goods. Therefore, credit can be claimed on these tanks, with 50% of the duty paid eligible for credit in the first year of procurement and the remaining 50% in subsequent years. Multiple contributors agreed with this interpretation.