Alteration of moulds for new product

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Rakesh Kothari (Querist)
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05 May 2012 Sir,

Recently we had to alter the MOULDS & ITS BOX for casting a new product since its design was different from our previous product.

In the process we had to incurr expenditure on STEEL, LABOUR & CONSUMABLES (viz.WELDING RODS) for ALTERATION / MODIFICATION of the MOULDS & ITS BOX.

Can we claim the the cenvat benefit on the expenses since ALTERATION / MODIFICATION has been done on the MOULDS & ITS BOX for producing the final product.

Kindly refer the section(s) under which the same can be claimed.

Early response in the matter would be highly appreciated.

Thanks & Regards,

S.P.Mahanta

S.P.Mahanta (Expert)
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05 May 2012 Mould is capital goods under excise rules.Expenses on steel, consumables on repairing / alteration to capital goods eligible for cenvat credit subject to rule 3 of ccr-2004 & rule 11 of central excise rules 2002. As regards, labour expenses, service tax credit available on bill of service provider.

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Rakesh Kothari

Rakesh Kothari (Querist)
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05 May 2012 Mr. S.P.Mahanta,
Thank you very much for clearing my doubts.

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