CIR NO.637/28/2002-CX DATED 08/05/2002
- Document type
- Circular
- Reference no.
- I
- Dated
Admissibility of CENVAT credit to inputs and capital goods used by the manufacturer outside the factory premises
- Sub:
- Admissibility of CENVAT credit to inputs and capital goods used by the manufacturer outside the factory premises.
2. It has been observed by the Board that inputs have been defined under Rule 2(f) of Cenvat Credit Rules, 2001 as below:
"Inputs means all goods except High speed Diesel Oil & motor spirit used in relation to the manufacture of final products whether directly or indirectly & whether contained in the final product or not .used for manufacture of final products or for any other purpose, within the factory of production."
3. Similarly, Capital goods have been defined under Rule 2(b) of said Rules as those items which are used in the factory of the manufacturer of final products. Moreover, as per Rule 3(1) of the said Rules, credit on inputs is also admissible when inputs are used in the manufacture of intermediate products by a job worker availing the benefit of notification No.214/86-CE dated 25.3.86. Further, in terms of Rule 4(5), capital goods may be sent to a job workers premises for production of goods. Therefore, in view of the said statutory provisions contained in Cenvat credit Rules, 2001 cited above, Cenvat Credit is admissible only when the inputs or Capital goods are used by the manufacturer within the factory premises [except when inputs or capital goods are used/sent for job work outside factory]. This position remains unchanged in the present Cenvat Credit Rules, 2002.
4. Trade and field formation may please be informed suitably.
5. Receipt of the same may please be acknowledged
6. Hindi version will follow.