Cenvat credit

Originally posted by : RAJESH CHOUDHARY
	whether we can avail cenvat credit on equipments used in sewage treatment plant if it is located within the excise bondary of the plant . Please suggest with proper reason and example

Dear Rajesh

We can avail the cenvat credit on goods are used for Manufacturing only,  and  taken on capital goods only,

thanks durga prasad..

Yes credit can be taken as capital expenditure...50% in the same year 50% in subsequent year.

thanks friend for the reply..

@ RAJESH

First you should check whether the goods i.e. equipment in your case is falling under definition of capital goods or inputs.
.Following goods are capital goods:

• chapter 82, 84, 85, and 90 to the schedule to Central Excise Tariff Act, and goods falling under heading 6804, and 6805
• Moulds, dies, jigs, and fixtures
• refractory materials
• pollution control equipments            

Above Capital goods should be eligible only if

they are used in the factory by the manufacturer of final product.(relationship with manufacture is not mandatory).

they are used for providing output services (to be used in the factory is not compulsory)

they are used for generation of electricity and power for captive consumption (to be used in the factory is not compulsory)

Considering your equipment falls under above category and is capital goods, you cannot use it outside factory because it is not for generation of power or electricity or for providing output services.

Thanks

Sourav