14 May 2009
A manufacturing company A gets its power manufactured by a different company B on payment of processing charges and takes cenvat credit on the 'fuel' supplied by it to B. Now, A has taken a decision to supply some of the critical spares also (besides the Fuel being supplied now) to B which will be used by B to maintain the P&M items belonging to Company B and used for generation of power.
Now is it possible for A to take cenvat credit on such spares also? I personally think it is possible.
CAclubindia
