TaxTMI 
TaxTMI 
a certain company is taking capital goods credit on M.S.Angles, Plates, M.S.Coil. These items are utilised in their Mill House and Boiling House for machineries as replacement for parts which are worn out. The Mill House and Boiling House are storage tanks. Is the credit on capital goods allowable
cenvat credit
17 Jun 2011 
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Cenvat credit eligibility on metal replacement parts challenged; respondents advise denial while boiler component status questioned.
A manufacturer sought Cenvat credit on M.S. angles, plates and M.S. coil used as replacement parts in Mill House and Boiling House. Respondents cited definitional provisions and notifications under the Cenvat Credit Rules and advised that credit on those items is not admissible, while a query remained whether a large M.S. coil functioning as a boiler component might be eligible as a capital good. (AI Summary)
A manufacturer sought Cenvat credit on M.S. angles, plates and M.S. coil used as replacement parts in Mill House and Boiling House. Respondents cited definitional provisions and notifications under the Cenvat Credit Rules and advised that credit on those items is not admissible, while a query remained whether a large M.S. coil functioning as a boiler component might be eligible as a capital good. (AI Summary)