Cenvat credit against erection work

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prashant (Querist)
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11 May 2011 Dear Sir,

Pl. suggest whether we can eligible to take credit on item (Steel Structures such as MS Plates & Beams).

Quick response will be highly appreciate.

T.K. JAGANATHAN

T.K. JAGANATHAN (Expert)
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13 May 2011 Cenvat Credit cannot be availed on items used for erection work viz., MS plates & Beams.

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prashant

prashant (Querist)
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13 May 2011 Under which rules the same is not eligible to take credit.

PL. specify

T.K. JAGANATHAN

T.K. JAGANATHAN (Expert)
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13 May 2011 As per the cenvat credit Rules 2004- Any
goods used for the construction of a building or a civil structure or laying of
foundation or making of structure for support of capital goods have been
excluded. The details has been provided D.O.F.No.334/ 3/2011-TRU dt 28.02.2011

prashant

prashant (Querist)
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13 May 2011 thanks you sir

prashant

prashant (Querist)
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13 May 2011 supplier has charge the duty amount, but we can't avil the said duty as per the cenvat credit rule.

My question is whether we need to pay whole amount to supplier including excise duty which were not aviled by us.

prashant

prashant (Querist)
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14 May 2011 plz. reply back to me

T.K. JAGANATHAN

T.K. JAGANATHAN (Expert)
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14 May 2011 Yes as per your commercials terms in your PO you need to pay your supplier including Excise Duty amount. The items have suffered excise duty at the time of initial clearance from the factory

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