CENVAT Credit on Capital Goods

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This query is : Resolved

ANAND U PATANKAR (Querist)

22 January 2009 Material purchased to erect building.
The material bills are inclusive of excise.
The material cost( basic) is capitalised to building.
Query:
CENVAT paid on input material , whether to claim credit @ 50% AS CAPITAL INPUT or to claim 100% as normal input.
Pl guide.
Thanks in advance
CA Anand U Patankar

Deepak Agrawal

Deepak Agrawal (Expert)

22 January 2009 Since raw material is capitalised, its an capital goods. So 50% will be claimned in this year & 50% in subsequent years...

N J Ansari

N J Ansari (Expert)

26 January 2009 As per my knowledge, CENVAT credit
is not allowed on materials used for
errection of Building

Rajesh Kumar

Rajesh Kumar (Expert)

01 February 2009 There is no legal provision which deny this cenvat, as after new cenvat rules, scope of cenvat has been incresed.
Regarding inputs or capital goods, Cenvat credit rule specifically says that such n such goods are capital goods. Look at the definition of capital goods in cenvat credit rules. Goods not falling under those are inputs, even when they may be capital goods for accounting principles.

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