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CENVAT credit eligibility on Steel plates used to repair work of Storage Tanks

Central Excise - Started By: - Yatin Bhopi - Dated:- 17-12-2015 Last Replied Date:- 1-1-2016 - Dear expertsWe are manufacturer of chemicals. to Store the finished goods and raw material we have storage tanks. these storage tanks need time to time repair and maintenance work since our finished goods and raw material of highly hazardous in nature. mainly we need steel plates (Chapter 72) for repair work ( patch work).After going through definition this item is not covered under capital goods defin .....

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credit under Rule 2(k). Any doubt, post another query through TMI. - Reply By Ganeshan Kalyani - The Reply = I understand from the query that steel plate which is required for repair work whether cenvat credit is available on that. In my view the credit is allowed but only on justification that the storage tank is utmost required and in order to upkeep the tank repair work has to be carried out and for the same steel plate is required. As like spare parts is eligible for credit which forms vital .....

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ing 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; 16[***] (vii) 17[storage tank and] I agree that CENVAT credit i .....

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ch is included in the value of the final product and goods used for providing free warranty for final products; or (iii) all goods used for generation of electricity or steam for captive use; or (iv) all goods used for providing any output service; but excludes- (A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol; 25[(B) any goods used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of fou .....

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used primarily for personal use or consumption of any employee; and (F) any goods which have no relationship whatsoever with the manufacture of a final product. Please share your views - Reply By KASTURI SETHI - The Reply = I fully agree with the views of Sh.Ganeshan Kalyani, Sir. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = As told by experts CENVAT credit is eligible. - Reply By MUKUND THAKKAR - The Reply = Dear yatin,According to my view you are not eligalbe to take credit of steel plate. .....

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ether the activity is commercially essential for manufacture of final product. If the ratio is applied in present case then the repair work for storage tank is very much essential to maintain it and without carrying out such repair it will badly affect the manufaturer as losses will be there. Thus the credit should be rightly allowed. - Reply By KASTURI SETHI - The Reply = I again agree with the views of Sh.Ganeshan Kalyani, Sir. How I agree I shall post my views today positively. - Reply By MUK .....

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COURT OF KARNATAKA AT BANGALORE N. Kumar and Ravi Malimath, JJ. COMMISSIONER OF CENTRAL EXCISE, BANGALORE-II Versus SLR STEELS LTD. C.E.A. No. 17 of 2010, decided on 10-3-2011 - Reply By KASTURI SETHI - The Reply = There have always been two fundamental conditions or parameters or requirements for availment of Cenvat Credt:-(1) Goods must be duty paid. If Capital goods, these must be used in the factory of the manufacturer and, if inputs, these must be used in or in relation to the manufacture o .....

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