Recently we had to alter the MOULDS & ITS BOX for casting a new product since its design was different from our previous product.
In the process we had to incurr expenditure on STEEL, LABOUR & CONSUMABLES (viz.WELDING RODS) for ALTERATION / MODIFICATION of the MOULDS & ITS BOX.
Can we claim the the cenvat benefit on the expenses since ALTERATION / MODIFICATION has been done on the MOULDS & ITS BOX for producing the final product.
Kindly refer the section(s) under which the same can be claimed.
Early response in the matter would be highly appreciated.
05 May 2012
Mould is capital goods under excise rules.Expenses on steel, consumables on repairing / alteration to capital goods eligible for cenvat credit subject to rule 3 of ccr-2004 & rule 11 of central excise rules 2002. As regards, labour expenses, service tax credit available on bill of service provider.
CAclubindia
