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CENVAT CREDIT

09 June 2007

Dear All,

Please tell me Can we avail Cerdit on fire fighting Equipments used in the plants for safety purpose. its urgent. if yes then what is the logic behind it?

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10 Replies

DILIP DARJI (Service) (13 Points)
Replied 12 June 2007

If the Chapter heading of Fire Fighting is included in the definition of Capital Goods, given in the CENVAT credit Rules, 2004, you can very well avail CENVAT credit.

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(Guest)

Yes you can avail cenvat credit on fire fighting equipment used in plant. Logic :- In case of Aircondition used in plant cenvat credit is allowed. similar logic applies to above equipment. since it is in or in relation to production.

meera (commercial assistant) (13 Points)
Replied 27 June 2007

suppose if fire fighting equipment is not falling under the definition of Capital Goods, given in the CENVAT credit Rules, 2004, then whether we can avail credit on that

mahesh (employee) (26 Points)
Replied 28 June 2007

Meera What did u mean by suppose

mahesh (employee) (26 Points)
Replied 28 June 2007

Meera What did u mean by suppose

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mahesh (employee) (26 Points)
Replied 28 June 2007

meera There is no place of agar magar in Central Excise Rules,Did u understand......?

(Guest)

What do you mean by credit in CENVAT ?

(Guest)

yes offcourse it is a capital goods but only 50% in a year

Shaily Jain (Chartered Accountants) (1054 Points)
Replied 29 September 2007

if fire fighting equipment are capital goods then A/c to Rule 2 of CCR 50% credit can be availed in 1st year and bal can be taken in subsequent year provided they are in possession.

Vijay K. Agrawal (Service) (608 Points)
Replied 26 October 2007

Dear mahesh pl check the tarii heading on purchase invoice in which this is falling . only goods falling under 82,84,85 and 68.02,6801.and 90 will be eligible