16 December 2009
What is the criteria for judging whether Cenvat should be availed as input or capital goods? As per definition capital goods are goods falling under tariff head 82, 84 etc. Should we stick to that and take credit of goods falling under these heads as capital and rest as input or is there any other criteria? What would be the case if a manufacturer manufacturing goods has his raw material falling under these heads (82, 84 etc)? Kindly quote refernce.
17 December 2009
For this purpose the definitions given in the rules are detrimental. In the definition of capital goods, it has been mentioned, the goods used in the factory of manufacturer of the final products.
While for defining input, it is defined as used in or in relation to the manufacture of final product.
The above are the broad lines to decide availment in the head of capital goods or as input.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)
17 December 2009
I guess you didn't understood my question. my query was how to decide whether to take cenvat credit as input or as capital goods? what's the basis for differentiation of input and capital goods?
19 December 2009
Dear, there is no mathematical rule and the definitions given would ultimately help which may be read with the tariff heading numbers given in the defenition.
Further the admissibility may be decided on the use in case to case.
In respect of any confusion, let me know so that the proper guidlines may be provided.
CAclubindia
