26 December 2011
dear sir plz clear me when capital good are purchased by company but company used this capital good as consumable items in factory then how much cenvat credit taken in current year pls answer me thnks in advance
26 December 2011
Below is definition of Capital Goods:
“capital goods” means,-
(i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Tariff Act; (ii) pollution control equipment (iii) components, spares and accessories of the goods specified at (i) and (ii) above; (iv) moulds and dies; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; and (vii) storage tank,
used in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office;
In last para it is written that it should be used in manufacturing of final product.
Further with Interpretation of above definition, if capital good is used as consumable in factory, it should be taken as input and cenvat shall be taken accordingly.
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