Cenvat Credit on Capital Goods, Service Tax

[vikas anand]

Dear All,

 

As per Cenvat Credit Rules, 2004 capital goods means the goods falling under chapter 82, 84, 85 & 90 and its components, spares and accessories of goods specified at (i) and (ii).

 

It means, if we procured any components, spares and accessories of goods for the initial goods procured even though it may fall in a different chapter, it is still eligible for Cenvat Credit under the capital goods definition?

 

Please advise...

 

Regards

Vikas Anand

 

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Any components, spares and accessories of goods which are parts of the capital goods duty paid on such components, spares and accessories of goods can be availed as capital goods.

[vikas anand]

Sir,

Even though it may falls in a different chapter and succeeding years for maintenance of Initial goods procured?

[Rajagopalan Ranganathan]

Sir,

The answer to your query is yes.

[Ganeshan Kalyani]

Yes the credit is eligible.

[KASTURI SETHI]

I support the views of both experts.

[Mahir S]

Yes , the views expressed above are correct.

[YAGAY AND SUN]

Yes, it is settled legal position that CENVAT credit shall be available on the components, spares and accessories of the capital goods of any C.E.Tariff Head.

[Ganeshan Kalyani]

Yes the credit is eligible.