Excise Registration, Central Excise

[RAMASWAMY KRISHNA IYER]

We are having excise registration  for factory premises.  We are leasing a portion of land to another party for 50 years for putting up utility (power transmission)..  Ownership of land continue with us only.

The utility facilities are constructed by us under "Build and Transfer" basis.

Pl clarify:-

whether cenvat credit on capital goods/inputs/input services for construction of facilities (bills are in our name) , can be availed.

Whether leasing of land out of registered premises, to be informed to Dept, whether said area to be deregistered.

Posts / Replies

[Pradeep Khatri]

No CENVAT credit cannot be availed on civil construction.  If there is nexus between the transmission of power with final product then you may avail the CENVAT credit as it is settled legal position that Ownership is no bar for availment of CENVAT credit.

Intimation should be provided to the Department and an application for change in layout plan should be submitted to the Department.

[BHARAT PUROHIT]

D/ SIRS

CREDIT IS DISALLOWED.  CREDIT IS AVAILABLE ONLY  IF INPUTS HV BEEN USED FOR PRODUCTION. U HV NOT CLAIRIFIED AS UTILITIES R CONSUMED BY U.

 

THNX/ B.B.PUROHIT