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Utilisation of Cenvat Credit

10 March 2011

Dear All,

I am working in Pvt limited co., & we are giving MODVAT invoice for Excise Duty. now we are planning to purcahse furniture for our office Furniture people giving modvat Invoice.

Please confirm whether i can utilise this modvat provided by Furniture people.

Advance thanks to all.

Regards

Prasad

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10 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 10 March 2011

Yes you can take cenvat credit………. And utilize it for payments.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 March 2011

Originally posted by : R.V.Durga Prasad
	Dear All, I am working in Pvt limited co., & we are giving MODVAT invoice for Excise Duty. now we are planning to purcahse furniture for our office Furniture people giving modvat Invoice. Please confirm whether i can utilise this modvat provided by Furniture people. Advance thanks to all. Regards Prasad

futnitures do not qualify for capital goods, unless they are special type furnitures required for production purpose, hence input credit not available.

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jagat singh (Asst. Manager) (57 Points)
Replied 10 March 2011

no no not at all, you can take credit of modvat only on those goods which are used in production or directly linked with your product. iIf you are buying furniture for production shop then u can take credit if u r buying it for office use you can not takle credit of that..

CA SANJAY TALWAR (Job) (222 Points)
Replied 10 March 2011

Agree With Mr Jagat

PRADEEP MULANI (Partner in MULANI BHANSARI & SHAH ) (142 Points)
Replied 10 March 2011

The Cenvat Credit shall be allowed only on Input Raw Material & Capital Goods used in the Factory Premises. If you can justify & convince to your Jurisdictional Assistant Commissioner or Deputy Commissioner that the Furniture is necessity for the administration of the factory & if such furniture is to be kept at factory premises then you can definately claim CENVAT.

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CA Saiyum khan (Practicing CA) (690 Points)
Replied 20 March 2011

@ Pradeep Mulani

If in a factory premises a separate block for GM production, Production Managers, Supervisors and back office staff for production data entry has been constructed.

Will the excise duty paid on furniture in this production admisnistrative office would qualify for CENVAT credit? If yes kindly provide the reference of the relevant provision or case law.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 20 March 2011

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);

(iv) moulds and dies, jigs and fixtures;

(v) refractories and refractory materials;

(vi) tubes and pipes and fittings thereof; and

(vii) storage tank,

used-

(1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or

(2) for providing output service;

(B) motor vehicle registered in the name of provider of output service for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of section 65 of the Finance Act;

=============================================================================

capital goods list is above, if your items qualify for anything above then u can avail input credit, otherwise not.

CMA Pramod Derle (acountant) (40 Points)
Replied 21 March 2011

now our company in a ssi exemption (below 1.5 crore turnover) of excise in the month of march 21 we are purchasing cnc machine the cnc machine reach in our factory tomarrow(22 march) but til the date we are not registered with excise can we availed cenvat credit paid on machinery ??? *& we are thinking about registration will take on 1 april 2011 kindly suggest me please ????

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 21 March 2011

from the invoice originating point u need to get ur excise number put in invoice to make it eligible for cenvat credit.

Durga prasad Ambati (Taxation, Pursuing CA) (737 Points)
Replied 19 April 2011

Originally posted by : U S Sharma
	Originally posted by : R.V.Durga Prasad Dear All, I am working in Pvt limited co., & we are giving MODVAT invoice for Excise Duty. now we are planning to purcahse furniture for our office Furniture people giving modvat Invoice. Please confirm whether i can utilise this modvat provided by Furniture people. Advance thanks to all. Regards Prasad futnitures do not qualify for capital goods, unless they are special type furnitures required for production purpose, hence input credit not available.