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Vijay (Manager)     11 November 2010

Capital Modvat Credit

Dear sir,

In case of Capital modvat , we have started a SSI unit in 2007-08, to running the unit we had to get Power connection, but the power supply pole is very far from the unit so that the Electricity Department denies that we are not having the Power  cable so long. Hence we had purchased the  required cable and given to department and got connection. After that we had taken credit  the capital modvat . now Excise department audit is completed for the period and department is demanding the capital Modvat amount and interest on that amount saying that you can not awail the said credit because it is out side from your unit . the said cable is used solely for the unit purpose. kindly Suggest me what is the reference to awail that



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 1 Replies

VIPIN GUPTA (ADVOCATE)     12 November 2010

In my views the unit can avail the cenvat of duty paid on cable, because it is used  for manufacturing process.

Nitin Gupta

Advocate


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