Cenvat credit admissibility

This query is : Resolved

CA Sanjay Baheti (Querist)
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25 February 2013 One of My client being a Pvt Ltd.Co.is engaged in manufacturing activities & covered under Excise as well as Service tax Law.

Now query is whether Service Tax Paid on Fabrication work related to Erection & Installation of Plant & Machinery within Factory Premises which is debited to Plant & Machinery by considering as Capital Goods as per law can be taken as Input Cenvat Credit or not.

@VaibhavJ

@VaibhavJ (Expert)
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25 February 2013 Hi

Yes you can claim but there is restriction of availment, Pl refer http://wirc-icai.org/wirc_referencer/indirect%20tax/Cenvat%20Credit%20Rules.htm

for more detais

In my view when you are capitalising ST payment then no CENVAT should be claimed since you will be also claiming depreciation on the same.

Thanks!!