10 April 2015
CBEC has clarified that CCR will be available on air conditioner used in factory for manufacturing of excisable goods but I'm confused whether CCR will be available for Centralized A/C used in production as it does not qualify as 'good' being 'Immovable'.
12 April 2015
In order to understand the availability of Cenvat credit on Air conditioners, you need to refer the definition of capital goods and not.
The definition that you are reading is of goods in relation to their excisability.
A centralized air conditioning plant is basically systems comprising of compressors, ducting, pipings, insulators and sometimes cooling towers etc. They are in the nature of systems and are not machines as a whole. They come into existence only by assembly and connection of various components and parts. Though each component is dutiable, the refrigeration/air conditioning system as a whole cannot be considered to be excisable goods.
A supplier would not have charged duty on the centralized air conditioning system/plant but on the components as mentioned above.
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