VESSSELS TANK

[SHARMA NARAYAN]

Dear sir,

we received vessel tank under ch heading 73090040

can we take credit under Part-II C

AI Summary

Eligibility for Cenvat Credit on Vessel Tank under Rule 2(a)(A)(vii); 50% Duty Credit for Capital Goods. A query was raised regarding the eligibility to claim credit under Part-II C for a received vessel tank classified under heading 73090040. One response clarified that under Rule 2(a)(A)(vii) of the Cenvat Credit Rules, 2004, 'storage tank' qualifies as capital goods, allowing 50% duty credit in the first year and the remaining 50% in subsequent years. Another response noted that if the tank is received but not purchased, service tax would be applicable, as per established legal precedent.