Grinding wheel & like whether capital goods or input

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2012 Dear Sir,

As per opinion of our excise auditor the grinding wheel & like used for cutting our pipe fittings to be capitalised and cenvat credit 50% only in C.Y. & 50% in succeeding year.

But in our general practice the grinding wheels are used only one time merely for 5 to 10 minutes on running mode after then it becomes scrap and useless. Since our industry is a metal industry on account of that it may not seem to be justified to capitalised such small things.

please give me a proper advice on the above matter whether the opinion of Excise Auditor is proper or not.

Amol S Joglekar

Amol S Joglekar (Expert)

10 August 2012 You need to prove this fact beyound doubts of the auditor. If; what you are saying for the grinding wheels and like items is true not only for using but SCRAPING as well, then auditor will change stance. Merely because you use it once does not take it away from capital goods item. But if you are really scraping it after one time use, then your contention may be held VALID.

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