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TMI BlogCENVAT Rules- Clarification-RegardingX X X X Extracts X X X X X X X X Extracts X X X X ..... force w. e.f 1 st April, 2000. The definition of " has been revised. The revised definition is comprehensive enough to specifically include components, spares and accessories as also other capital goods like moulds and dies, refractories and refractory materials etc. It may be clarified that the components, spares and accessories may fall under any Chapter but they should be components, spares and accessories of the goods specified in clause (a)(I) of rule 57AA. It may also be clarified that even air-conditioners and refrigerating equipment and computers would be eligible to CENVAT credit as capital goods. The only condition is that the manufacturers should use them in the manufacture of final product. Clearly, therefore, such o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for debiting the credit shall arise only in respect of CENVAT credit attributable to that part which is not received within 180 days. Provision has also been made for permitting the CENVAT credit when the inputs or capital goods are purchased from the first stage dealer or from the second stage dealer. These dealers should be registered under rule 52AA of the Central Excise Rules. The other procedural requirements in respect of first stage dealer and second stage dealer will continue as in the case of modvat rules. In the case of capital goods, the CENVAT rules do not provide installation of capital goods as a pre-requisite for taking CENVAT credit. The credit can be taken as and when the capital goods are received in the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the records of the manufacturer, including the payment made to the sellers of inputs and capital goods were purchased and were used by him for the intended purpose. 2. You are requested to kindly impress upon the officers to go through the CENVAT rules and apply them in the spirit the CENVAT scheme has been announced by the Finance Minister. Provisions like filing of declaration of inputs and capital goods have been dispensed by way of simplification. The intention and the expectation is that CENVAT rules would reduce the area of disputes and litigation. You are requested to kindly keep this aspect in mind and impress upon this policy objective to field officers. In case of any doubt, the matter should be resolved at your le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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