CENVAT CREDIT

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This query is : Resolved

CA Anurag Shukla (Querist)

07 January 2010 HI MY FRIENDS WILL ANYBODY ANSWER MY QUERRY REGARDING THE ELIGIBILITY OF CENVAT CREDIT IN CASE OF CEMENT INDUSTRY MANUFACTURING CEMENT SHEETS OF VARIOUS SHAPES & SIZES.
ACTUALLY THE FACTORY IS AVAILING THE CREDIT WITH THE PURCHASES MADE WITH HPCL OR INDIAN OIL ETC. WILL THIS CREDIT WILL BE ALLOWED AS LDO,HSD AND PETROL IS SPECIFICALLY EXCLUDED FOR AVAILING CREDIT AND IF ALLOWED THEN IT SHOULD BE AN INPUT NOT AN CAPITAL GOODS.
SO IS THE FACTORY IS ELIGIBLE FOR THIS CREDIT.
2. MY SECOND QUERRY IS IF IT EXPORT THESE SHEETS TO NEPAL OR ITS NEPAL DEPOT WILL IT BE COUNTED FOR EXPORT OR CLEARENCES FOR HOME CONSUMPTION.
IF IT IS EXPORT THEN WHETHER ITS DUTY WILL BE PAID BY AVAILING THE CENVAT CREDIT OR FROM PLA.
3. IF THE FACORY HIRES AN GTA (GOODS TRANSPORT AGENCY)FOR REMOVING ITS DUTY FROM FACTORY GATE TO DEPOT OR BUYER PREMISES SO WILL IT (FACTORY) ELIGIBLE FOR CREDIT OF SERVICE TAX PAID TO IT AND IF THEN UP TO WHAT EXTENT.
4. CAN THE FACTORY AVAIL ABATEMENT AND CREDIT BOTH AT THE SAME TIME AND IF SOME OF THE SHEETS SOLD BY THE FACTORY IS DAMAGED THEN WHETHER CREDIT OF SERVICE TAX WILL BE AVAILED AT GROSS OR NET AMOUNT.

PLEASE HELP ME IN THIS MATTER.
THANKS
ANURAG SHUKLA
CA (FINAL) STUDENT.

Rajesh Kumar

Rajesh Kumar (Expert)

13 January 2010 On Motor spirit & HSD credit is specifically excluded. No credit can be take.
Supply to nepal is export, however such export is made on Nepal invoice on payment of duty. Duty can be paid either through cenvat or PLA. If however, payment is received in foreign exchange, export without payment of duty can also be made.
If depot is the place of removal, credit of service tax on GTA is available.
question 4 is not clear.

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