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Cenvat avaialability

Soumyayan (Service) (72 Points)

27 March 2014

Sir,

Our company get container from a manufacturer. We sent the sticker and it pasted on the container and they returned. Please advice whether we can claim the Cenvat on the cost of the Stickers?

Material cost 100000

Cost of sticker sent by us 5000

Total 105000

Cenvat @ 12.36% 12978

less: sticker cost 5000

Net value 107978

Vat 5% 5399

Net Payable 113377

Can we claim the cenvat on Rs.5000 @ 12.36% i.e. 618.

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2 Replies

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 27 March 2014

Excise duty should be charged on assessable value of rs. 100000/-. Duty will not charge on sticker supply by you. You are manufacturer then you can avail the cenvat credit on purchase sticker.

Akshay Garg (Indirect tax trainee) (457 Points)
Replied 28 March 2014

Dear Somyayan

It will form part of the Assessable value to the manufacturer and thus be chargeable to duty of excise. When the duty of excise has been charged on the amount including stickers , the same shoud be allowed as credit. In case the manufacturer had purchased the stickers as per your order then he would have definitely charged it to you as it would form part of cost to him , thus the whole amount would be chargeable to duty of excise and CENVAT credit of the whole amount including the duty paid on stickers shall be allowed.