Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
11 January 2016Is excise duty paid on items used for Plant and Machinery which is under Capital Work in Progress allowed as CENVAT Credit?
In my opinion as Machine itself donot use in Facory it shall be available when Plant and Machinery was first put to use.
Awaiting early reply, Thanking You
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 13 January 2016
Clarified, erection of Machinery is not a condition for availing CENVAT credit for exisisting firm (Source: ICAI Material: Practice Manual on CENVAT Credit)
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 13 January 2016
The CCR allows for credit on inputs ( steel + component parts etc) used in manufacture of plant and machinery. As long as PM would be further used in manufacture of deutiable goods, the credit is available.
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