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Credit on welding electrode

RAJENDRA (CMA) (39 Points)

25 October 2014

whether welding electrode eligible for CENVAT credit ? if yes than also specify that either it is input or capital goods.

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11 Replies

pintu ( Executive) (174 Points)
Replied 26 October 2014

Its inputs because its used during welding in relation to final product

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R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 27 October 2014

Cenvat is eligible based on the usage.

Its used to manufactured of your final product, it is eligible for cenvat as input.

Its used to repair or maintaince of your capital goods then is is not eligible for cenvat.

Regards,

RP Ananthakumar

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 28 October 2014

as you have not specified the product you do manufacture, ................................... if the electrodes are used in service oriented works contact then the reply will differ.

RAJENDRA (CMA) (39 Points)
Replied 04 November 2014

Dr sir it is related to steel manufacturing.

RAJENDRA (CMA) (39 Points)
Replied 04 November 2014

@ R P sir,

i am liitle bit confused bcz u hv written that if it is used for repairs & maintenance then it shall not b eligible 4 credit. i think in dis case we can take it as a capital goods and take credit for this.plz clearify dis.

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Shailendra Jaiswal, (Accountant) (185 Points)
Replied 04 November 2014

AS PER RULE 3 OF CCR 2004 , TAX PAIND ON INPUT GOODS, CAPITAL GOODS , AND INPUT SERVICE

ELIGIBLE FOR CREDIT. PLEASE READ THIS LINK https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=182

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 11 November 2014

Originally posted by : RAJENDRA

@ R P sir,

i am liitle bit confused bcz u hv written that if it is used for repairs & maintenance then it shall not b eligible 4 credit. i think in dis case we can take it as a capital goods and take credit for this.plz clearify dis.

No. it is not eligble for cenvat if the rods used for that purpose.

kumar hattanna (Officer - Excise) (525 Points)
Replied 11 November 2014

Dear RP sir

Rule 2. Definitions. - In these rules, unless the context otherwise requires,-
(a) "capital goods" means:-

(A)	the following goods, namely:-
	(i)	all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.05 grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule to the Excise Tariff Act;
	(ii)	pollution control equipment;
	(iii)	components, spares and accessories of the goods specified at (i) and (ii); If the components used for the (1) and (2) of the CG for repair or maintenance Cenvat credit eligible. Please clarify if I wrong. Regards Kumar

manish (CMA) (24 Points)
Replied 02 January 2017

Manish

Sir I Have a question regarding for welding electrod. I am working in irone manufacturing industires we taken as input on Electrod welding but department said that you are not elegible for taken input Credit as Capital goods and your credit should be under input but we are using it for capital goods repairs so we are elegible under it.

It is request to all the expert for give me advice with case study under which we can take credit on Electrod Welding. It is urgent because department raise Demad on it.

Thanking You.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 06 January 2017

Welding electrode is used in the facotry and for and in relation to manufacture. Even if used for repairs that is in realtion to manufacture indirectly. However the dept had in the past raised objections which were hedl as eligible. There are a number of decisions in this reagrd. Please see excus or any other data base for such cases.