CENVAT Credit on Computers and Air Conditioners

[PANKAJ GROVER]

Dear All

Whether Service Provider can claim CENVAT of Excise Duty paid on Computer, Air Conditioner installed in the building of service provider, if yes then either capital goods or input?

Please reply

Regards

RAPG & Co.

 

AI Summary

Service provider debates CENVAT credit eligibility for computers and air conditioners as capital goods under CCR, 2004. A service provider inquired about claiming CENVAT credit on excise duty paid for computers and air conditioners installed in their building, questioning whether these should be classified as capital goods or inputs. One respondent suggested treating them as inputs. Another respondent referred to the definition of capital goods under the CCR, 2004, emphasizing that capital goods must be used for providing output services to qualify for CENVAT credit. The third response highlighted that if computers and air conditioners are used as capital assets for providing taxable services, CENVAT credit should be based on them being capital goods, not inputs.