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Capital Goods eligible for Cenvat Credit

Ashish Sharma (Chartered Accountant) (57 Points)

10 May 2007

What kind of Capital Goods are eligible for claiming Cenvat Credit? Whether all kinds of capital goods used in factory qualify or only those falling under Plant & Machinary.

Thanks & Regards,

Ashish

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7 Replies

Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 01 September 2007

tools, moulds, jigs, are also eligible for CENVAT as capital goods. Components, spares and accessoroies of P&M are also capital goods. Even Airconditioner, Refregirator & computers are also capital goods. But the condition is they must be used in the manufacture of final product / in providing output service. Eg., Computer used in a office is not eligible for CENVAT as capital goods. but computer used directly for the purpose of manufacture is eligible for CENVAT as capital goods.

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Ramanathan (Article Assistant) (135 Points)
Replied 14 September 2007

In addition to what Mr.Dinessh has told Capital goods must be used for the manufacture of dutiable goods

Ramesh Kothari (Manager-EOU commercial) (161 Points)
Replied 24 November 2007

Yse all kind of capital goods qualify for CENVET which used diredtly indirectly used for manufacturing

Jagrut Shah (Chartered Accountant) (80 Points)
Replied 05 December 2007

Hello Mr.Ashish, I will suggest u that u refer Cenvat Credit Rules, 2004 and in that in Sec.2 u find defination of capital goods on which we can claim Cenvat Credit. This will help u.

(Guest)

Can cenvat credit of capital goods be availed before installation & put to use of the capital goods?

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Adv. S Sharma (Lawyer) (574 Points)
Replied 04 January 2008

hi
first read the definition y urself
its a very complicated issue. actly its nt complicaed but several questions are attached with urs one single question.

Ans. of Mr. Rajesh Querry
2004 [168] ELT 369
CANVAT CREDIT IS AVAILABLE BEFORE INSTALATION
[ READ THE JUDGEMENT TOO ]

suman nvss y (article assitant) (147 Points)
Replied 04 January 2008

CENVAT CREDIT IS AVILABLE IS ON ALL CAPITAL GOODS PURCHASED FOR PRODUCING,PROCESSING,MANUFACTURING THE GOODS DIRECLTY OR INDIRECLY. BUT YOU CAN AVILE CREDIT OF 50% OF DUTY IN FIRST YEAR. REST 50% YOU AVILE IN NEXT YEAR