Cenvat credit

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This query is : Resolved

CA Shishir Agrawal (Querist)

14 December 2012 Whether a manufacturing company can take credit of excise duty paid on procurement of row material if, it sells the same as such. further can he charge excise duty on such sale to pass on the duty.

aadish

aadish (Expert)

14 December 2012 Sales as such means no manufacturing and it is called trading VAT and sales tax shall be applied, n if after purchasing some manufacturing is done on it, then only Excise is applicable i.e payable and then only Cenvat can be taken on inputs purchased for manufacturing i.e for producing final product.

CA Shishir Agrawal

CA Shishir Agrawal (Querist)

17 December 2012 if the company charges excise on the invoice of such sales, then what is consequence of that, since the party should not be able to take cenvat credit of that.but he will have invoice which wilol show that he have paid excise to vendor as input

aadish

aadish (Expert)

18 December 2012 Excise should not be chargeable first of all , VAT/CST should be charged, n if charged by manufacturer,then in my opinion purchaser if manufacturing company can take cenvat credit of excise paid.

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