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TMI BlogInputs - Cenvat Credit Rules, 2004X X X X Extracts X X X X X X X X Extracts X X X X ..... No. The inputs which are qualifying the conditions of Rule 2(k) are eligible of input credit. Items specifically excluded from the scope of Inputs. There are 6 categories of items excluded from the scope of the term Inputs. i.e. -Petrol, Diesel, LDO etc. -Material used in construction or execution of works contract of a building or making / laying of foundation / structures for support of capital goods (however service portion of works contract is allowed) -Capital Goods except used as parts or components in manufacturing of a final product -Motor Vehicles; -any goods, such as food items, goods used in a guesthouse, residential colony, club or a recreation facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 591 - CESTAT, AHMEDABAD , it was clarified that fuel used for generation of electricity is eligible if electricity is used within factory for any purpose but not fuel used for electricity which leaves the factory. In Flex chemicals 2007 (3) TMI 134 - HIGH COURT, MP, it was held that fuel used partly in manufacture of excisable goods and partly non-dutiable or exempt goods is eligible for Cenvat credit. Important points emerged out from the definition of Input: Only those structural components which are used for foundation or making structure for support of capital goods are excluded from definition. Structural components which are essential parts of machinery/ equipment will be eligible as input. Whether a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DELHI , it was held that safety shoes are eligible for Cenvat. In case of Service providers, definition of Input is restrictive. Only those inputs used for providing any output service would be eligible. The service provider will be entitled to avail Cenvat credit on inputs even if he avail the inputs outside the place which is not a factory. Small value capital goods which have a value upto ten thousand rupees per piece will be eligible as inputs and not capital goods w.e.f. 1.4.2016.Thus entire 100%cenvat credit will be available in the first year itself. Goods used for pumping of water are eligible for cenvat credit even if these are used outside the factory (w.e.f. 1.4.2016) . Inputs directly sent to site and fit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturer/service provider shall pay an amount equal cenvat credit taken on such inputs. If the said goods are used subsequently, the manufacturer/service provider shall take the cenvat credit equal to the amount paid earlier. Where on any goods payment of duty is ordered to be remitted under rule 21 of the Central Excise Rules, 2002, the cenvat credit taken on the inputs used in the manufacture of the said goods, shall be reversed. Where an amount is required to be paid (for reversal of credit), it shall be paid by the manufacturer/service provider, on or before the 5 th day of the following month for the months from april to February, and for the month of march it shall be paid on or before 31 st day of march. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional duty under section 3(1) and under section 3(5) of the customs tariff act and the education cess and higher secondary cess. . Rule 4 CONDITIONS FOR ALLOWING CENVAT CREDIT The cenvat credit in respect of inputs may be taken immediately when the inputs are received in the factory of manufacturer/premises or service provider/premises of job worker in case goods are sent directly to the job worker on the direction of manufacturer/ service provider. The CENVAT credit in respect of inputs may be taken by the provider of output service when the inputs are delivered to such provider, subject to maintenance of documentary evidence of delivery and location of the inputs. The manufacturer/service provider shall not take CE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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