TaxTMI 
TaxTMI 
Ours is a Sugar Unit We have availed cenvat credit on M.S.Plate used in Maintenence and fabrication of vessels pipe as Input. Department issued SCN for demand with interest and penality. Please submit your advice in the matter
Cenvat credit on M.S. Plate as Input
03 Jul 2011 
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Cenvat credit on MS plate: allowed if used to fabricate capital goods, disallowed when used for construction or support.
Cenvat credit on MS plate depends on whether the plates were used as inputs to fabricate capital goods within the factory (qualifying for credit) or were employed for construction, foundation or supporting structures (excluded from input). Amendments to the Explanation to the input definition and later notifications reduced admissibility for items like plates and angles; some rulings applied those amendments retrospectively. Challenges to show eligibility should focus on the actual purpose of use during the relevant period. (AI Summary)
Cenvat credit on MS plate depends on whether the plates were used as inputs to fabricate capital goods within the factory (qualifying for credit) or were employed for construction, foundation or supporting structures (excluded from input). Amendments to the Explanation to the input definition and later notifications reduced admissibility for items like plates and angles; some rulings applied those amendments retrospectively. Challenges to show eligibility should focus on the actual purpose of use during the relevant period. (AI Summary)