cenvat on building material

 please let me know that whether a company can avail cenvat credit on excixe duty paid by it on construction items such as cements, steel rods etc .which it has purchased for its new project or extension on current plant.

 please give your answer along with any case law if available .

Replies (3)
Dear Mr. Raj, please note that manufacturer or producer of final products shall be allowed to take credit on any inputs or capital goods received by the manufacturer for use in, or in relation to, the manufacture of final products, However, extension of an existent plant or setting up of a new plant does not amounts to manufacturing of finished goods. I dont remember the case law right now... hope i m able to make u clear.. thanx
Dear raj. no cenvat credit will be admissible for cement etc. used in Building material.as Neither these falls in the definition of input nor capital goods. but in certains cases for exp. in case of cement industry certain civil work teared plant and Machinery, then it will be available.pl mentioned your industry and where you are using these material.fact of the cases are imp. mail on vijay.agrawal @ acccement.com, if you need any further clarification.
If the cement and steel rods were used in relation to the building of the factory, the credit would not be admissible. However, if the same were used in relation to the machinery, which was subsequenly used in 'manufacture' of the final product, then the credit would be allowed. mail me the facts of the case @ sumit0112 @ yahoo.com, if you require further clarifications.

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