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Cenvat credit admissibility

This query is : Resolved 

25 February 2013 One of My client being a Pvt Ltd.Co.is engaged in manufacturing activities & covered under Excise as well as Service tax Law.

Now query is whether Service Tax Paid on Fabrication work related to Erection & Installation of Plant & Machinery within Factory Premises which is debited to Plant & Machinery by considering as Capital Goods as per law can be taken as Input Cenvat Credit or not.

25 February 2013 Hi

Yes you can claim but there is restriction of availment, Pl refer https://wirc-icai.org/wirc_referencer/indirect%20tax/Cenvat%20Credit%20Rules.htm

for more detais

In my view when you are capitalising ST payment then no CENVAT should be claimed since you will be also claiming depreciation on the same.

Thanks!!


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