Cenvat on builiding construction material

Can we avail cenvat credit on material used for consruction of factory building viz.. cement steel TMT bars iron rods channel etc..

Replies (2)

Inputs are defined under Rule 2(k). Cenvat Credit is available on the inputs or capital goods used in the manufacture of the final product, which is a dutiable product. Cenvat is not available on the inputs used for the maintenance of the factory as you are not using those products for the manufacturing of your product. It is just a requirement for the maintenance of the premises where the excisable good is manufactured.

In your case you cannot avail credit on these inputs. There are even number of judgments which clearly say that in your kind of cases cenvat cannot be taken.  

Recent amenments in finance bill 09 clarifies the same.........An explanation is being inserted in Rule 2 of Cenvat Credit rules, 2004 so as to clarify that 'inputs' shall not include cement, angles, channels, CTD or TMT bars and other items used for construction of shed, building or structure for support of capital goods.

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