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

[Rajagopalan Ranganathan]

Sir,

Rule 2 (a) (A) (vii) of cenvat credit rule 2004 defines 'storage tank' as capital goods. Therefore you are eligible to take credit of duty paid on storage tanks as capital goods. You have to take 50% of duty paid on such tanks in the first year in which they are procured and the remaining 50% can be taken during any of the following years. First 50% should be availed within one year from the date of purchase invoice.

[YAGAY and SUN]

Storage Tanks are well incorporated in the definition of Capital Goods and CENVAT credit on storage Tanks can be availed in two equal instalment in first two of its procurement.

[KASTURI SETHI]

I support the views of both experts.

[Ganeshan Kalyani]

I am also of the same view as expressed by learned experts. Thanks..

AI Summary

CENVAT credit for storage tanks recognised as capital goods; staged availing required with initial instalment within prescribed period.
Storage tanks are classified as capital goods under Rule 2(a)(A)(vii) of the CENVAT Credit Rules, 2004, enabling CENVAT credit of duty paid on such tanks. Credit must be availed in staged instalments: an initial instalment must be taken within the Rule specified period from the purchase invoice, with the remaining instalment(s) claimable in subsequent year(s).