Availing cenvat on the premises under construction
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We are having Centralised Registration and having 2 plant in running conditions while our 2 plants are under constuction. All these plant are of same nature and output service provided or to be provided are same. At this moment we are taking cenvat credit of all 4 plants while there is no output from our 2 plants (which are under constrcution). Is this right to consument all cenvat credit of plant under construction form plant which are running at 100% capicity.
Debate on Cenvat credit usage for plants under construction: Accumulate credit or utilize now? Section 57 implications. A company with centralized registration is operating two plants and constructing two others, all providing the same output service. The company is currently availing Cenvat credit for all four plants, including those under construction. One respondent advises against using Cenvat credit for the plants under construction to avoid future legal issues, suggesting instead to accumulate the credit until the plants are operational. Another respondent believes the company is entitled to avail and utilize the credit, referencing similar cases over the past decade. (AI Summary)