10 January 2013
Can u tell me whether cenvat credit in respect of office chairs (FA) purchased by service provider is available and under which provision since chair not falls under the specified Capital goods in respect of which CCR can be availed.
11 January 2013
Credit of all goods used in the factory is allowed except in so far as it is specifically denied. The expression “no relationship whatsoever with the manufacture of a final product” must be interpreted and applied strictly and not loosely. The expression does not include any goods used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not. Only credit of goods used in the factory but having absolutely no relationship with the manufacture of final product is not allowed. Goods such as furniture and stationary used in an office within the factory are goods used in the factory and are used in relation to the manufacturing business and hence the credit of same is allowed.
CAclubindia
