01 March 2008
HI.... I have taken cenvat credit as an Input on cement and TMT Bar which has been used in making foundation and platform of Plant & machienery (spoge iron plant). now excise dept is reversing the same claiming not eligible for cenvat credit at all. kindly suggest me the appropriate action to be taken. refer case law if any.
03 March 2008
Cenvat credit on capital goods is available on goods falling under specified chapter heading and there parts + pollution control equip.etc (refer the definition), cement and tmt are not covered under any of these.
Further credit is also availavle on inputs used for mfg. capital goods but again these capital goods should fall under specified chapters.
It is better to reverse the credit as early as possible to avoid mounting interest and a mendatory penalty.
CAclubindia
