DARSHAN Y JANI (ACCOUNTS MANAGER) (25 Points)
26 February 2011Dear all,
Hi I am Darshan Jani from Ankleshwar Gujarat Indiai have an query that can we take a excise cenvat credit on cement & steel for making factory building & making structure for plant & machinery.
requesting you to reply urgently
Thanking yOu
Darshan Y jani
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 26 February 2011
You can not take credit on cement and steel used for construction purpose. As a manufacurer / dealer registered under excise you can avail credit on the following
1) On capital goods ( as defined under rule2 of cenvat credit rules) used in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office. Rule 2 gives list of captial goods
2) Input used in or in relation to manufaturing of final product (Refer rule 2 of cenvat credit rule for the full defination)
The cement and steel which you are refering does not fall under any of the above category. Hence you can not avail cenvat credit on it.
Regards
Dayananda
Yogesh
(Excise-officer)
(29 Points)
Replied 04 March 2011
Soumyen Sarkar
(free)
(102 Points)
Replied 04 March 2011
No credit is allowable for civil construction. That is the thumb rule. You may study the order of cestat in appeal case of Vandana Global Limited Versus Commissioner of Central Excise, Raipur Appeal No. E/1036/2008 and form you own opinion.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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