CENVAT ON CAPITAL GOODS

[Sandeep Aggarwal]

Dear All

Please see the attached queries:

1. If goods covered under the Chapters 80,82,84..(Capital Goods) but are used as part or component of final product , do we need to take cenvat (@50 %) in two installments if final product removes or sale out in the same year. Can the same be treated as input and cenvat be availed 100%?

2. Is there any notification regarding non reversal of cenvat credit on tools, dies, jigs, fixtures, moulds etc when the same is sent for job worker for further processing of intermediate goods and the same do not come back within 180 days ( rather scrapped at job worker's end to produce intermediate goods)?

Thanks 

SANDEEP AGGARWAL

AI Summary

CENVAT Credit: Eligibility for Capital Goods When Used as Components or Sent to Job Workers Under Discussion A discussion on CENVAT credit for capital goods raised queries about credit eligibility when goods are used as components of final products and when sent to job workers. One respondent explained that full CENVAT credit is available if capital goods are removed in the same financial year; otherwise, only 50% credit is available initially, with the remainder in the following year. Another respondent suggested treating such goods as input materials to avail 100% credit in the same year. The discussion also touched on non-reversal of credit for tools sent to job workers but not returned within 180 days.