Cenvat Credit on supply of tangible goods

[RAJENDRA KHADILKAR]

It seems to have a big blow on availment of credit on supply of tangible goods.

The Cenvat Credit Rules have gone a change [Notification No. 18/2012 CE (NT)]

a substitution of sub-clause (B) of clause (l) with new claiuse (B) & (BA) a credit on supply of tangible goods would be question.  Comments please.

[Radha Arun]

The bar is only on credit of vehicle lease / hire, in so far as the vehicle is not covered by the definition of 'capital goods'.

AI Summary

Cenvat credit limitation on supply of tangible goods confined to vehicle lease or hire where not treated as capital goods. The amendment to the Cenvat Credit Rules raised whether credit on supply of tangible goods is barred; the response clarified the restriction applies only to credit on vehicle lease or hire where the vehicle is not within the definition of capital goods, and does not constitute a blanket bar on credit for all tangible goods supplies.