TaxTMI 
TaxTMI 
Dear Sir,
CENVAT credit can be taken on Safety Shoes provided to Factory Staff and Workers, to fulfil to Safety norms.?
Please provide the expert advise.
Regards
Pradeep Jain
CENVAT Credit on Safety Shoes
05 Nov 2012 
4 Replies 
11949 Views Asked by
CENVAT credit on safety equipment: safety gear constituting inputs enables eligibility where indispensable to manufacturing operations.
CENVAT credit applies to safety equipment (safety shoes, helmets, gloves) treated as inputs under the Cenvat Credit Rules, 2004 when used by workers on the shopfloor to enable or protect manufacturing operations. Where such equipment is an indispensable necessity for carrying out production and is mandated by welfare or safety legislation, it satisfies the functional test of being used in relation to manufacture and is therefore eligible for credit despite Revenue contentions to the contrary. (AI Summary)
CENVAT credit applies to safety equipment (safety shoes, helmets, gloves) treated as inputs under the Cenvat Credit Rules, 2004 when used by workers on the shopfloor to enable or protect manufacturing operations. Where such equipment is an indispensable necessity for carrying out production and is mandated by welfare or safety legislation, it satisfies the functional test of being used in relation to manufacture and is therefore eligible for credit despite Revenue contentions to the contrary. (AI Summary)