Cenvat credit of capital goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2011 my client providing the authorised service station service .Can he take the cenvat credit on following capital goods.
Air Conditioner - used for Customer waiting room. Steel racks - Used for keeping equipments and tools in the servic station area. Steel furniture used for client waiting rooms.Please solve the query.

CA CS PRASHANT

CA CS PRASHANT (Expert)
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17 December 2011 There should be direct nexus between the INPUT and OUTPUT for taking CENVAT credit.

In your case it has been noticed that Air conditioner and Steel furniture will not be eligible for CENVAT credit.

However the Stell racks which are used in service area...can definitely be taken for CENVAT credit