We are erecting a plant at our new factory. For that plant, we have purchased various item like pipes, pumps, heaters instruments and other components. We have paid excise duty on such goods. After erection of the plant, we shall be providing service from this new plant.
Kindly advise whether
1) we can take CENVAT credit on the same after our registration with Service Tax authoities and what is the maximum limit for claim of CENVAT in a year after its erection?
2) What is the provision for the same and what documents need to be kept for such credit and
3) whether such CENVAT credit can be used for making payment of service tax on the service to be provided by us.
Can CENVAT credit be claimed on capital goods like pipes and pumps for a new plant? Cenvat Credit Rule 2004 applies. A discussion on a forum addresses whether CENVAT credit can be claimed on capital goods used in erecting a new plant. The query involves the eligibility of items like pipes and pumps for CENVAT credit after plant erection and registration with Service Tax authorities. Respondents reference Cenvat Credit Rule 2004, clarifying that only 50% of credit can be claimed in a year, with original duty-paying invoices required. Items must qualify as capital goods under specified chapters to be eligible. The discussion also highlights the distinction between inputs and capital goods for credit eligibility. (AI Summary)
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