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Cenvat Query .....Very Urgent

jitesh (Excise officer) (83 Points)

22 December 2010

Dear All

1.Can we avail the credit of Weigh Scale vide HS No.84232000/8423000/84238190 .

2. We have purchase "Comvac Vaccum Machine (vaccum cleaner)" for the use to remove waste powder from scurbber,

We take the credit of that item.

Please give me suggestion & any notification or rule.

Thanks in advance.

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12 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 22 December 2010

unless u specify the principal nature of your activity in manufacture under excise, one cant give opition.

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CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 22 December 2010

as far as i got your question you shoudl be able to get the credit ..

Kashif (Accountant-CA Finalist) (105 Points)
Replied 22 December 2010

Definitely.. you will get the cenvat credit for the amount of excise duty which you have paid on the wheight scale..

vishal kapoor (a) (66 Points)
Replied 22 December 2010

Dear JItesh,

Your Asset falling under the chapter 84 of CETA 1985. So the asset is a Capital Goods under Central Excise Act.

So you can claim maximum 50% of the Input Credit in the year of receipt of Capital Asset & balance in the next year. Please make sure that the asset is used in the Factory & not in the office, otherwise credit will not be allowed.

Plz correct if i m wrong

Thanks

Vishal

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 22 December 2010

8423 WEIGHING MACHINERY (EXCLUDING BALANCES OF A

SENSITIVITY OF 5 CENTIGRAMS OR BETTER), INCLUDINGWEIGHT

OPERATED COUNTING OR CHECKING MACHINES; WEIGHING

MACHINE WEIGHTS OF ALL KINDS

8423 10 00 - Personal weighing machines, including baby u 16%

scales; household scales

8423 20 00 - Scales for continuous weighing of goods u 16%

on conveyors

8423 30 00 - Constant weight scales and scales for u 16%

discharging a predetermined weight of

material into a bag or container, including

hopper scales

- Other weighing machinery:

8423 81 -- Having a maximum weighing capacity

not exceeding 30 kg :

8423 81 10 --- Beam scale u 16%

8423 81 90 --- Other u 16%

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 22 December 2010

i asked your principal nature of activity, coz 3 type of scales, out of which two are uncomon,

vishal kapoor (a) (66 Points)
Replied 22 December 2010

@ Dear U S Sharma..

Plz elaborate your answer..Can Me Jitesh take Credit on these goods?

These goods are capital goods or not?

Thanks

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 22 December 2010

Originally posted by : vishal kapoor
	@ Dear U S Sharma.. Plz elaborate your answer..Can Me Jitesh take Credit on these goods? These goods are capital goods or not? Thanks

ofcourse these items are capital goods, and qualify for input credit, mere chapter heading qualifying capital goods, does not allow the assesee to take input credit, unless its used for production of taxable goods or service.
computers/ airconditioners/ counting machines are also in chapter 84, but credit is not possible, coz these goods does not relate to manufacture or service.
mere buy of weighscale does not qualify for capital goods input, unless the assesee declares that this is required for production or service, and normal production flow can not be completed without this machine.
Hope next query from your side will be with details also :)

jitesh (Excise officer) (83 Points)
Replied 23 December 2010

Thanks to All.

The Weigh Scale is Readability -200g, & Capacity -2000 kg with platfrom size 800mm x 1200 mm

Material Descripttion is "IND 780 (P) -2000 (CL Tonner) Weigh Scale

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 23 December 2010

Originally posted by : jitesh
	Thanks to All. The Weigh Scale is Readability -200g, & Capacity -2000 kg with platfrom size 800mm x 1200 mm Material Descriptttion is "IND 780 (P) -2000 (CL Tonner) Weigh Scale

here i have not asked the weight scale desciption but the line of production where the weight scale is to be used. proper queries and solutions will avoid further misunderstandings.

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vishal kapoor (a) (66 Points)
Replied 23 December 2010

Dear Mr U S Sharma,

I think if computer / air conditioner installment in the factory & process amounts to manufacture, then person can take the credit on those goods.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 23 December 2010

Originally posted by : vishal kapoor
	Dear Mr U S Sharma, I think if computer / air conditioner installment in the factory & process amounts to manufacture, then person can take the credit on those goods.

these items are in negetive list, and lots of arguments are still going on for such issues,

in a nutshell the assessee has to establish the requirement / utility of capital goods towards production of taxable goods or services, and have to establish also that without these capital goods the service or goods cant be produced.