Dear sir.
we purchase various storage tank
ALKALI MEASURING TANK-
SMBS DOSING TANK
ANTI SCALANT DOSING TANK
IN CH HEADING 73090090
CAN WE TAKE CENVAT CREDIT IN INPUT OR CAPITAL GOODS
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Sir,
Rule 2 (a) (A) (vii) of cenvat credit rule 2004 defines 'storage tank' as capital goods. Therefore you are eligible to take credit of duty paid on storage tanks as capital goods. You have to take 50% of duty paid on such tanks in the first year in which they are procured and the remaining 50% can be taken during any of the following years. First 50% should be availed within one year from the date of purchase invoice.
Storage Tanks are well incorporated in the definition of Capital Goods and CENVAT credit on storage Tanks can be availed in two equal instalment in first two of its procurement.
I support the views of both experts.
I am also of the same view as expressed by learned experts. Thanks..