Cenvat on computer installed in office of service provider?, Central Excise

[devinder bagia]

Dear all,

My client wants to take cenvat credit of computers purchased and installed in the office of service provider. The computers are used for providing output service of call center. Whether it is admissible to avail credit specially when rule 2(a) of  CCR, 2004 talks about only manufacturer not allowed to avail credit if capital goods are installed in office of manufacturer.

Posts / Replies

[Pradeep Khatri]

Capital goods installed at service providers office for providing output services are eligible for CENVAT credit.  Further, kindly also refer Rule 7A of the Cenvat Credit Rule, in the case of ISD.