CENVAT extension - pumping of 'water'
S.T. Vishesh, a netizen sent us this -
Annexure II to the JSTRU-II letter F.No. 334/8/2016-TRU dated 29.02.2016 mentions -
"(b) CENVAT credit on inputs and capital goods used for pumping of water, for captive use in the factory, is being allowed even where such capital goods are installed outside the factory. [Amendment in rule 2 clause (a), sub-clause (A) condition (1A) and clause (k) sub-clause (ii) of the Rules refers]."
Amendments have been made by notification w.e.f 01.04.2016 in the following fashion -
In Rule 2 of CCR, 2204, clause (a), in sub-clause (A), condition (1A) to read -
[(1A) outside the factory of the manufacturer of the final products for generation of electricity [or for pumping of water] for captive use within the factory; or]
In rule 2 of CCR, 2004, clause (k) "input"means-
(iii) all goods used for generation of electricity or steam [or pumping of water] for captive use; or
Interestingly, a question arises as to why only "pumping of water"is mentioned? Cannot any other raw material take its place? And, what about service of maintenance of the pump/pump-house - will that be considered an Input service as a corollary to the above expansion?