TaxTMI 
TaxTMI 
Inputs - Cenvat Credit Rules, 2004
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....m the scope of Inputs. There are 6 categories of items excluded from the scope of the term Inputs. i.e. -Petrol, Diesel, LDO etc. -Material used in construction or execution of works contract of a building or making / laying of foundation / structures for support of capital goods (however service portion of works contract is allowed) -Capital Goods except used as parts or components in manufacturing of a final product -Motor Vehicles; -any goods, such as food items, goods used in a guesthouse, residential colony, club or a recreation facility and clinical establishment, when such goods are used primarily for personal use or consumption of any employee; and -Any item which is having no relationship with manufacture. Items specificall....
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....d partly non-dutiable or exempt goods is eligible for Cenvat credit. Important points emerged out from the definition of Input: * Only those structural components which are used for foundation or making structure for support of capital goods are excluded from definition. Structural components which are essential parts of machinery/ equipment will be eligible as input. Whether a particular component is a part of machinery / equipment or a support component is a question of fact and need to be examined on case to case basis. * Only those goods defined as capital goods under CCR, 2004 will be excluded, other capital goods if used in factory should be eligible as inputs. * Petrol, Diesel have been specifically excluded in the definition ....
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....hich have a value upto ten thousand rupees per piece will be eligible as inputs and not capital goods w.e.f. 1.4.2016.Thus entire 100%cenvat credit will be available in the first year itself. * Goods used for pumping of water are eligible for cenvat credit even if these are used outside the factory (w.e.f. 1.4.2016) . * Inputs directly sent to site and fitted there are eligible as input. In the case CCEv.Central Electronics Ltd(2011)271 ELT 586 (CESTAT) it was held that since the system was to be manufactured at various sites, each such site will be considered as part of manufacturing premises for that system and hence inputs received at those sites should be considered as having been received in the factory. * Inputs should be stored....
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....be reversed. Where an amount is required to be paid (for reversal of credit), it shall be paid by the manufacturer/service provider, on or before the 5th day of the following month for the months from april to February, and for the month of march it shall be paid on or before 31st day of march. If the manufacturer/ service provider, who is required to pay an amount (for reversal of credit), fails to pay the amount, it shall be recovered in the manner as provided in rule 14. Inputs produced/manufactured by a 100% EOU, a unit in EHTP, STP: Cenvat credit on inputs produced/ manufactured by a 100% EOU,EHTP, STP, and * used in the manufacture of final products/provision of service in any place other than India and * the unit pays exci....
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....of inputs may be taken by the provider of output service when the inputs are delivered to such provider, subject to maintenance of documentary evidence of delivery and location of the inputs. The manufacturer/service provider shall not take CENVAT credit after one year of the date of issue of any of the documents specified in sub- rule (1) of rule 9. When inputs sent to job worker: The cenvat credit on inputs allowed if inputs as such or after being partially processed are sent to a job worker and from there sent to another job worker and is received back by the manufacturer/service provider within 180 days of their being sent to any job worker. Cenvat credit also allowed if inputs sent directly to job worker without their being first ....