can cenvat credit avail on cement used in C.G.and other

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This query is : Resolved

Akshay Purohit (Querist)

24 February 2009 We are a chemical manufacturer.Presently we can not avail cenvat credit on cement used in capital goods,i.e. like chimney and other supporting to plant machinery.
Can we avail cenvat credit on cement used in capital goods.We are also used cement for following used.

1 Boundary wall of storage tank(safety purpose)
2 Construction of repair of road in factory premises.
3 Repair of building and plant machinery.(which is covering for plant and machinery)
4 Repair of building in colony of companies.

Can we avail on cenvat credit on cement above used.We also refer two cestat case which is content is as follows

CESTAT, MUMBAI
BHUSHAN STEEL & STRIPS LTD. Versus COMMISSIONER OF C. EX., RAIGAD
Dated: 14-12-2007

Central Excise - Credit allowed on cement & CTD bars as these are support of capital goods –credit allowed on cellars as they are technically necessary & integral part of plant – Mfg. process requires controlled temp. & dust free environment so credit is allowed on roofing material used to provide cover for plant – aluminum wires/cable/conductors, electricity transmitting tower welding electrodes, wires are eligible – but credit is disallowed on excavators & material handling equipment i.e. tippers & spares

CESTAT, MUMBAI
LLOYDS METAL & ENGINEERS LTD. Versus COMMISSIONER OF C. EX., NAGPUR
Dated: 26-02-2008

Central Excise - Whether steel and cement used in foundation of kiln, cooler and chimney are capital goods in terms of definition thereof in Rule 2(a) of the Cenvat Credit Rules – whether they are eligible for credit as capital goods – Held, yes - using steel and cement for providing the necessary foundation and support for the capital goods, are eligible to CG credit – denial of capital goods credit on Helmets (for safety of their employees) is justified because this denial is not challenged by assessee

My query is on the above case basis can we avail on cenvat credit on cement used in capital goods and other used.

Rajesh Kumar

Rajesh Kumar (Expert)

27 February 2009 Credit is available when cement is used in installing capital goods etc. Credit may not be available if cement is used in construction, roads, boundary wall etc.

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