Cenvat credit availment on inputs used for assembling storage tank, Central Excise

[SANDESH SHINDE]

Dear Sir,

We are a paint mfg co, pleas advise whether we can avail cenvat credit of the materials i.e. Inputs used for assembling storage tank which is used for storage of solvents, water used in the manufacturing process. Please give us any references regarding this.

Posts / Replies

[Ganeshan Kalyani]

Sir, please refer below given issue id.

#1 Issue Id: - 109552
Dated: 17-12-2015

May your query be resolved. Thanks.

[KASTURI SETHI]

It is a fact that final product cannot be manufactured without storage tank which is capital goods under Rule 2 (a) of Cenvat Credit Rules, 2004. Hence in my view credit should be admissible in terms of Board's circular no.267/11/2010-CX dated 8.7.2010 (Para No.3 refers). This circular is based on the judgement of Supreme Court. Read the whole circular carefully to ensure the eligibility as situation differs from case to case.

[MUKUND THAKKAR]

I agree with view given by Sh. Kasturi Sethiji.

[MADAN RAHEJA]

Dear Sir, Please check decision in 2013 (1) TMI 731 - CESTAT MUMBAI in the case of LSR SPECIALITY OILS PVT. LTD. on similar matter.

[KASTURI SETHI]

Sh.Madan Raheja Ji,

Thanks a lot for posting judgement. As per EXCUS, this has not been challenged by the department.

[Ganeshan Kalyani]

Sir, also please refer 2010 (7) TMI 12 - SUPREME COURT OF INDIA decision in case of Commissioner Of Central Excise, Jaipur Versus M/s Rajasthan Spinning & Weaving Mills Ltd.

Thanks.