Cenvat Credit on S.S Pipes (Tarif Head 7306 1100), Central Excise

[Mathurthi RamKumar]

Dear All,

First..lot of thanks to all of you to give valuable information about my queries.

Can we take cenvat credit on S.S Pipes (Tarif Head 7306 1100) used to manufacturing process. Beco'z this head not related to Capital Goods.( One of the excise officer told that cenvat credit not applicable for 73 series items.)

Kindly guide me.

Regards

M.RamKumar

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

The contention of the Excise Officer is correct. The definition of capital goods is as below:

(a)"capital goods" means:-

(A) the following goods, namely:-

(i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule to the Excise Tariff Act;

(ii) pollution control equipment;

(iii) components, spares and accessories of the goods specified at (i) and (ii);

(iv) moulds and dies, jigs and fixtures;

(v) refractories and refractory materials;

(vi) tubes and pipes and fittings thereof;

(vii) storage tank and

(viii) motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis, but including dumpers and tippers

used-

(1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or

(1A) outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory; or

(2) for providing output service;

(B) motor vehicle designed for transportation of goods including their chassis registered in the name of the service provider, when used for-

(i) providing an output service of renting of such motor vehicle; or

(ii) transportation of inputs and capital goods used for providing an output service; or

(iii) providing an output service of courier agency

(C) motor vehicle designed to carry passengers including their chassis, registered in the name of the provider of service, when used for providing output service of-

(i) transportation of passengers; or

(ii) renting of such motor vehicle; or

(iii) imparting motor driving skills

(D) components, spares and accessories of motor vehicles which are capital goods for the assesse,

[Rajan Rajan]

If it is fitted with machine it must be under CG as per the definition iii) components, spares and accessories of the goods specified at (i) and (ii);

[Rajagopalan Ranganathan]

Sir,

As per your statement s.s. pipes are used to manufacturing process. Therefore S.S. pipes are inputs and you are eligible to avail the credit of duty paid on such pipes. Moreover components, spares and accessories of the goods specified at (i) and (ii) of definition of Capital goods may fall under any of the tariff item and eligible for credit. Therefore if S.S. pipes are used in the manufacture of capital goods it is an input and you can avail the credit which is your substantive right.

[Rajan Rajan]

Sir,

Thanks a lot for clarifying the matter.

If S.S. pipes are used in other than manufacture of capital goods like engineering product etc., then we can avail Cenvat Credit on S.S Pipes (Tariff Head 7306 1100) under Capital Goods or Input.

Pls. advice.

[PAWAN KUMAR]

Dear Sir,

If you use the S.S.Pipes into manufacturing of engineering goods meant for sale, cenvat credit as inputs can be taken.

[Naveed S]

Sir,

In your query, you have mentioned that S.S. Pipes are used in the manufacturing process but you have not elaborated the process wherein such S.S. Pipes are used.

[MUKUND THAKKAR]

Sir,

your query is in two part, first part your just taking opinion, and second query with factual position of product when it will used. in your engineering product. than not any question is arise. if same will be used in your structure than your not eligible to take cenvat credit.

[RAM SHARMA]

Dear Experts,

We are registered manufacturer of exciasable goods. We are purchasing steel tube pipe etc for construction of water treatment plant, fire fitting line and building repair construction etc. within factory premises.

whether we can take cenvat credit on above mention point.

Thanks