VESSSELS TANK, Central Excise

[SHARMA NARAYAN]

Dear sir,

we received vessel tank under ch heading 73090040

can we take credit under Part-II C

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

According to Rule 2 (a) (A) (vii) of Cenvat Credit Rules, 2004, 'storage tank' is a capital goods and you can avail the credit of duty paid on such tanks at the rate of 50% in the first year of procurement and the remaining 50% can be taken during any of remaining years.

[YAGAY AND SUN]

If you have just received it but not purchased it then Service Tax would be chargeable. It is settled legal position.