CENVAT credit on MS racks falling under CHS 73, Central Excise

[Yatin Bhopi]

We are manufacturer. we have recently modified our storage warehouse. We have purchase some rack falling under chapter heading 73 for keeping pallets . MS racks are not fitted in capital goods definition. Since this racks are use for keeping goods in safe and proper movement of goods, can we avail the CENVAT credit in input. Since amount involved is more than 1 Lac we want your expert advice in the matter.

Posts / Replies

[CA.Ankit Gulgulia]

Racks, shelves, angles and channels generally fall under chapter 73 and 94. These are not capital Goods as per Rule 2(a).

Significance of racks in the manufacturing process / service renderance is key in the present matter.

You may refer

Banco Products (India) Ltd. Vs Commissioner of Central Excise, Vadodara [2009 (2) TMI 101 - CESTAT AHMEDABAD]

HCL TECHNOLOGIES LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NOIDA 2010 (254) E.L.T. 175 (Tri. - Del.) = 2010 (2) TMI 1001 - CESTAT NEW DELHI

M/s. Sree Ramicides Chemicals Pvt. Ltd. Versus Commissioner of Central Excise (Service Tax), Tiruchirapalli = 2013 (10) TMI 229 - CESTAT CHENNAI

interalia.

[Naveed S]

Cenvat credit on racks may be admissible as inputs, if such racks are actually required for purpose without which the safety and movement of goods is not possible.