Definition of input

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shubhani jain (Querist)
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30 January 2012 Dear Sir,
My question is regarding availability of CENVAT Credit of material used in construction of factory shed. As per new definition of input, goods used in construction of building or civil structure is excluded. So can we take credit of material used in construction of factory shed?

please clarify.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 January 2012 "input" means-

(i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production;

(ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service;

Explanation 1.- The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever.

Explanation 2.- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer;

for more info:
https://www.cbec.gov.in/excise/new-cenvat-rules.htm

shubhani jain

shubhani jain (Querist)
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31 January 2012 (iv) for clause (k), the following shall be substituted, namely:-
„(k) “input” means–
(i) all goods used in the factory by the manufacturer of the final product; or
(ii) any goods including accessories, cleared along with the final product, the value of which
is included in the value of the final product and goods used for providing free warranty for
final products; or
(iii) all goods used for generation of electricity or steam for captive use; or
(iv) all goods used for providing any output service;
but excludes-
(A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol;
(B) any goods used for-
(a) construction of a building or a civil structure or a part thereof; or
(b) laying of foundation or making of structures for support of capital goods,
except for the provision of any taxable service specified in sub-clauses (zn), (zzl), (zzm),
(zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act;
(C) capital goods except when used as parts or components in the manufacture of a final
product;
(D) motor vehicles;
(E) any goods, such as food items, goods used in a guesthouse, residential colony, club or a
recreation facility and clinical establishment, when such goods are used primarily for
personal use or consumption of any employee; and
(F) any goods which have no relationship whatsoever with the manufacture of a final
product.
Explanation. – For the purpose of this clause, “free warranty” means a warranty provided by the
manufacturer, the value of which is included in the price of the final product and is not charged
separately from the customer;‟;

PLEASE REFER NOTIFICATION- 03/2011 CE (NT) DT.01/03/2011

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