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Issue ID : 1958
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Cenvat credit on steel and cemant for expansion of existing plant

Date 01 Jun 2010
Replies2 Answers
Views 1665 Views
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A huge expansion of existing plant has started amounting to Rs 1000 Crores. The Company shall procure huge quantity of steel, Cement etc. Can the Company avail the Cenvat Credit involved in these Purchases??? The Material in question relate to Expansion programme only.
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Replied on Jun 3, 2010
1. Dear Sir, For the expansion of your plant what ever the material relates to structure and building are not treated as Capital Goods as per the Central Excise Rules, hence you can not avail the Central excise duty on purchasing of these materials. Thanks.
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Replied on Jun 8, 2010
2. You can not avail the cenvat credit on steel or cement

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