Cenvat availability - 100% or 50%

[Guest]

Dear sir, A Mfg. co. mfg. product which falls chapter 84 , if this co. purchase its raw materials which is also under chapter 84, whether Cenvat is available 100 % or 50 % ( as chapter 84 is is for capital goods) Manoj

[Madhukar N Hiregange]

For a capital good manufacturer the components could be under chapter 84/82/90 etc. These would be considered as inputs and eligible for 100% credit under the CCR 2004

AI Summary

Cenvat credit availability: components treated as inputs eligible for full credit under Cenvat Credit Rules for capital goods manufacturers. Components and parts procured by a capital-goods manufacturer classifiable under chapters such as 84, 82 or 90 are to be regarded as inputs and qualify for one hundred percent credit under the Cenvat Credit Rules 2004; classification under a chapter associated with capital goods does not by itself preclude full Cenvat credit when the items function as inputs.