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

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.