Cenvat Credit ??

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Anoop Garg

FCA

83 Points Posted on 01 May 2009

Dear Sir,
I need your guidance on followin query.

We are Milk Dairy plant producing exempted(GHEE) as well as excisable products( Lactose and Casein)-
We took cenvat credit on steel items 'inputs'like alluminium sheets,steel sheets,pipes and angles etc. bought for construction of capital items(Milk Silos (T Chapter 73),Supporting structures,Steel Sheds for milk intake docks
The deptt has disallowed cenvat credit on these 'inputs' used in manufacturing of capital goods.

-They cited that milk silos are not Goods so no cenvat credit allowed as this are not 'capital Goods'
-They dissalowed Cenvat Credit on inputs( pipes,angles etc) used for supporting structures etc.
Please advice.

Thanks & Regards
Anoop Garg
9878614378
Chandigarh

Replies (5)

Praveen Jain

Chartered Accountant

76 Points Posted on 02 May 2009

Deptt has correctly disaalowed cenvat , as cenvat credit is not available on structure steel used into civil construction( strutural steel used by you for milk silo.)

Regards

Praveen Jain

Anoop Garg

FCA

83 Points Posted on 02 May 2009

This is not Civil Construction

Arun Kumar Singh

GST Advocate

13166 Points Posted on 02 May 2009

Alluminium sheets,steel sheets,pipes and angles etc., parts of construction. The capital goods should be used in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office.

Rajesh Kumar

Advocate- Tax

6957 Points Posted on 02 May 2009

Cenvat credit is allowed on these items. The departmental stand is wrong. These goods are being capitavely consumed, and hence cenvat credit is allowed. The position has been made very clear after amendment in the captive consumption notification.