×
Headlines

HR Plates, MS Flats, MS Coils, etc. used for manufacturing ships, considered as ‘inputs’: Gujarat HC allows Cenvat Credits [Read Judgment]

Cenvat Credits - Expenses incurred - Gujarat - High - Court - Taxscan

In the case of the Commissioner of Central Excise And Service Tax vs. M/s Pipavav Shipyard Limited, the High Court of Gujarat held that the HR Plates, MS Flats, MS Coils, Wire Ropes, Rails, Welding Electrode which was used in the fabrication of cranes which are used for the purpose of manufacturing or building ships, these goods are those goods which are used in relation to the manufacturing of final products whether directly or indirectly. Such goods are called ‘input’ and thus the Cenvat Credits can be claimed.

The respondent is 100% Export Oriented Unit (EOU), which is engaged in the business of manufacturing of ships, providing ship repair, management and maintenance services. In order to facilitate the activities of manufacturing the respondent is required to construct the cranes and dry docks. Further the respondent purchased various items such as steel items, cement, etc. All these items purchased by the respondent are liable for excise duty and service tax. While filing the monthly returns the respondent filed its monthly returns and claimed Cenvat Credits.

The question raised in this case was whether the respondent can claim the Cenvat Credit or not?

The Division Bench of the High Court of Gujarat comprising of Hon’ble Mr. Justice J.B. Pardiwala and Hon’ble Mr. Justice A.C. Rao in the light of the Cenvat Credits  Rules, 2004 held that the HR Plates, MS Flats, MS Coils, Wire Ropes, Rails, Welding Electrode which was used in the fabrication of cranes which are used for the purpose of manufacturing or building ships, these goods are those goods which are used in relation to the manufacturing of final products whether directly or indirectly. Such goods are called ‘input’ and thus the Cenvat Credits can be claimed.

To Read the full text of the Judgment CLICK HERE
Top