Is excise duty paid on items used for Plant and Machinery which is under Capital Work in Progress allowed as CENVAT Credit?
In my opinion as Machine itself donot use in Facory it shall be available when Plant and Machinery was first put to use.
Awaiting early reply, Thanking You
Clarified, erection of Machinery is not a condition for availing CENVAT credit for exisisting firm (Source: ICAI Material: Practice Manual on CENVAT Credit)
The CCR allows for credit on inputs ( steel + component parts etc) used in manufacture of plant and machinery. As long as PM would be further used in manufacture of deutiable goods, the credit is available.
Naveen Fintech Pvt Ltd
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Gupta Sachdeva & Co. Chartered Accountants
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