INPUT VS CAPITAL GOODS

This query is : Resolved

Praveen Nigam (Querist)
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18 May 2011 WE HAVE PROCURRED RAILWAY SLEEPER FALLING UNDER CHAPTER HEADING 68109990 AND 68101190 FOR CONSTRUCTION OF RAILWAY TRACK. WE HAVE TREATED THESE SLEEPER AS CAPITAL GOODS AT THE TIME OF AVAILMENT OF CENVAT CREDIT. MY QUESTION IS:
WHETHER AVAILMENT OF CENVAT CREDIT ON SLEEPERS AS CAPITAL GOODS IS JUSTIFIABLE OR NOT?

RAM SAINI

RAM SAINI (Expert)
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18 May 2011 you have only two option to take cenvat credit raw material or capital goods

if you want to take cenvat credit on railway track it is justifiable under capital goods

Praveen Nigam

Praveen Nigam (Querist)
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18 May 2011 how can we take cenvat credit on railway track as capital goods? railway track do not fall under the definition of 'capital goods'.

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U S Sharma

U S Sharma (Expert)
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18 May 2011 is your company owner of railway? if yes than these are your capital goods, but if your company is not railway, then its property of railway..........

you have not stated what you are doing with railway goods on track........

please mention your activity with such railway tracks to get proper responce.

for your informatin
service tax is not applicable on any railway track