Cenvat on Forklift Truck

[sanjay misra]

Dear Sir

We have purchased a forklift truck for material handling at our manufacturing Unit.

can this be a capital goods and can we take cenvat on this forklift truck

 

Sanjay

[Sachin Agarwal]

Dear Sanjay Ji,

Forklift truck  is not capital goods therefore CENVAT Credit cannot be taken on it as per rule 2 (a) of CENVAT Credit rules, 2004.

 Thanks

Sachin Agarwal

[YAGAY and SUN]

You can avail the CENVAT credit on Fork Lift Truck since it has been used in handling of material which is inturn being used in manufacturing of final product.

[NEERAJ KUMAR, RANCHI]

Dear Sanjay Ji

Since forklift truck fall in the tariff heading no. 8427 and as per the definition of the capital goods in cenvat credit rules, all goods falling under chapter 84 are allowed as capital goods, so I think that you can take credit on the same.

 

AI Summary

CENVAT credit on forklift truck faces divergent views over its classification as capital goods and tariff heading.
Whether a forklift truck qualifies for CENVAT credit as a capital good is contested: one respondent disallows credit under the CENVAT Credit rules' definition of capital goods, while other respondents permit credit based on the forklift's use in handling input materials used in manufacture and on its tariff classification within the machinery chapter thereby treating it as a capital good under the rules.