Cenvat on capital goods - Reg

[vinay wakde]

We are receiving various accessories/component of specified capital goods falls under Chapter No. 84, such as Rubber Hose (Ch No. 4009 22 00) used for Hydraulic system, CAF Gasket (Ch.No.6812 93 00), Rubber Diaphragm (Ch No.40) used for various Valves, O-Ring (Ch.No. 4016 93 30) Oil seal (Ch No. 4016 93 00) for Pumps etc.

We are taking 50% CENVAT credit on these items immediately after receipt of the goods in the factory treating as accessories of specified Capital goods (Ch.No. 84)  & balance 50% credit shall be taken in next financial year in terms of Rule 4(2)(b) of CENVAT credit Rules,2004.

At the time of maintenance, if the accessories/components mentioned above are required to be replaced in same financial year. Kindly let us know whether balance 50% credit to be taken in next year against these receipt shall be eligible for us or not.   

Regards,

VINAY

 

 

AI Summary

Debate on Claiming CENVAT Credit for Capital Goods Accessories Under Rule 4(2)(b) of CENVAT Credit Rules, 2004 A discussion on a forum addresses the eligibility for claiming CENVAT credit on accessories and components of capital goods, specifically under Rule 4(2)(b) of the CENVAT Credit Rules, 2004. A user questions whether the remaining 50% credit can be claimed in the next financial year if the items are replaced within the same year. Responses vary: one user states that 100% credit is only allowed if capital goods are cleared in the same year, while another clarifies that full credit can be claimed for spares and parts in the same year. Others argue about the applicability of different rules and exceptions for consumables.