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Can we take the Cenvat credit on all material invoices?

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This query is : Resolved

Rajendra Ahire (Querist)

19 April 2010 Dear Sir,

Our company (Partnership firm - SSI Unit) is manufactured and job working of Motor vehicle Parts. In factory premises are 4 departments. (Exa- A-B-C-D). We are manufacture final excisable products in only A department. B C & D departments are used for job working.

We have purchased XYZ excisable input material (5000 Units) and used to all 4 (ABCD) departments. (Excisable & Job work) for A- 2000 Nos., B-1000 Nos., C-1000 Nos., D-1000 Nos.

Can we take the full credit of all (5000 Nos.) xyz material? Or only which is used in A department ? (2000 Nos.)
If only for A department. But we can’t take the correct accounting of all material to every time, which material used for A & BCD ?

What is the solution on above problem?

Please help me on urgent basis.

Thanks & Regards,

Rajendra Ahire

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

19 April 2010 Since maintaining records is not possible the credit shouldbe taken after usage. Only materials used in excisable activity maybe availed after removal by working out the BOQ for the excisable goods.

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