24 February 2009
We are a manufacturer of chemical.Presently we can not avail cenvat credit on cement used in capital goods,i.e. like chimney and other supporting to plant machinery. Can we avail cenvat credit on cement used in capital goods.We are also used cement for following used.
1 Boundary wall of storage tank(safety purpose) 2 Construction of repair of road in factory premises. 3 Repair of building and plant machinery.(which is covering for plant and machinery) 4 Repair of building in colony of companies. 5 Construction of Chimney and capital goods
Can we avail on cenvat credit on cement above used.We also refer two cestat case which is content is as follows
CESTAT, MUMBAI BHUSHAN STEEL & STRIPS LTD. Versus COMMISSIONER OF C. EX., RAIGAD Dated: 14-12-2007
Central Excise - Credit allowed on cement & CTD bars as these are support of capital goods –credit allowed on cellars as they are technically necessary & integral part of plant – Mfg. process requires controlled temp. & dust free environment so credit is allowed on roofing material used to provide cover for plant – aluminum wires/cable/conductors, electricity transmitting tower welding electrodes, wires are eligible – but credit is disallowed on excavators & material handling equipment i.e. tippers & spares
CESTAT, MUMBAI LLOYDS METAL & ENGINEERS LTD. Versus COMMISSIONER OF C. EX., NAGPUR Dated: 26-02-2008
Central Excise - Whether steel and cement used in foundation of kiln, cooler and chimney are capital goods in terms of definition thereof in Rule 2(a) of the Cenvat Credit Rules – whether they are eligible for credit as capital goods – Held, yes - using steel and cement for providing the necessary foundation and support for the capital goods, are eligible to CG credit – denial of capital goods credit on Helmets (for safety of their employees) is justified because this denial is not challenged by assessee
My query is on the above case basis can we avail on cenvat credit on cement used in capital goods and other used.
12 September 2009
Case Laws are there. But the dept not allowing to take Cenvat Credit. If CBEC amends or issues any notifications then only the dept allows the credit. Basing on these case laws you have to fight with the dept. before the Adj. Authority/Cestat.
CAclubindia
