Availing of cenvat credit on PARTS of Capital Goods, Central Excise

[G GOSWAMI]

Since long we are availing Cenvat credit on PARTS" of Capital goods without any objection.

But recently EA-2000 Audit has raised objection for availing credit on "PARTS" of Capital goods falling other than Chapter 84,85,82 &90 since the word "PARTS" is not covered in the defination of Capital Goods under Rule 2(a)(A) of CCR. More over Air Circulator/Pedastal Fan of Ch.84 essential  in our manufacturing unit to cool the machines and to maintain the ambient of the manufacturing area are also not being allowed since they are not attached/parts/component of the CapitAl Goods/Machines. Kindly enlighten with your valued opinion.

Regards,

G.GOSWAMI

Posts / Replies

[Pradeep Khatri]

Anything including capital goods which is being used in the factory premises and essential to maintain humidity etc are covered under the purvies of CENVAT credit.