cenvat credit

[Guest]

a certain company is taking capital goods credit on M.S.Angles, Plates, M.S.Coil.  These items are utilised in their Mill House and Boiling House for machineries as replacement for parts which are worn out.  The Mill House and Boiling House are storage tanks.  Is the credit on capital goods allowable

[Snehal Kulkarni]

 

Please refer the Rule 2(a) & (k) for defination of Cenvat Credit Rules 2004 ( also refer to the NTF. NO. 16/2009-CE. (N.T.), DT. 07/07/2009 & Notification No 3/2011-CE.NT dated 01.03.2011)

The Credit of duty on MS Angle Plates Coils is not admissible.

[BHARAT PUROHIT]

D/ SIRS: M.S COIL WILL B USED AS COMPONENT ( IT WILL BE  A BIG SIZE/ VALUE / UTILITY  COMPONENT OF BOILER. SHOULD IT NOT BE ELIGIBLE FOR CENVAT ? REQUEST YR VIEWS.

 

 THNX/ B.B.PUROHIT

AI Summary

Cenvat credit eligibility on metal replacement parts challenged; respondents advise denial while boiler component status questioned. A manufacturer sought Cenvat credit on M.S. angles, plates and M.S. coil used as replacement parts in Mill House and Boiling House. Respondents cited definitional provisions and notifications under the Cenvat Credit Rules and advised that credit on those items is not admissible, while a query remained whether a large M.S. coil functioning as a boiler component might be eligible as a capital good.