Cenvat credit on steel and cemant for expansion of existing plant

[Anupam Mathur]

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.

[kiran pai]

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.

[Surender Gupta]

You can not avail the cenvat credit on steel or cement

AI Summary

Cenvat credit on structural materials denied: expansion-related steel and cement not treated as capital goods, credit unavailable. Materials used for building and structural works in an expansion are not treated as Capital Goods under the Central Excise Rules; accordingly, cenvat credit on purchases of steel and cement relating solely to the expansion programme is not admissible.