Cenvat credit - reg.

Debas Maji (Jr. Exe) (55 Points)

21 November 2012  

 

 

Sir,

Our plant is an integrated steel plant along with Captive Power Plant for reformation of its sponge iron plant by adding new induction furnace and captive power plant, sinter plant, SMS.  During reformation of our plant, we have manufactured some components / parts of our power plant and steel plant like Stock Bunker, Slag Crusher Banker, PAN Banker, Conveyor Line, Ground Hopper, in our factory premises and submitted Chartered Engineers’ Certificate in respect of the above manufacturing item by using Angle, Channel, H.R. Coil, Plate, Joist, and availed CENVAT credit on this respective inputs.

Central Excise audit put on objection by a spot memo it has been alleged that LPG and Construction materials like H.R.Coil, Angle, Channel, Plate, Joist, which CENVAT credit has been availed is irregular and not admissible as per provision of CENVAT Credit Rules’2004 and suggested to pay back / reverse the inadmissible credit with interest.

My question is that whether we can avail CENVAT credit or Not ?

Please let us have your valuable opinion in this matter.