Cenvat credit if final product is exempt from central excise
This query is : Resolved
06 April 2013
Sir,
One of our client has taken exemption under Notification No. 33/2012 of Central Excise. Goods supplied by us are capital goods for him.
Due to this exemption we are not going to charge Excise duty to him.
While manufacturing such goods, we procure items from our suppliers who charges Excise duty to us.
Now can we take CENVAT credit on such material against our regular sales which are taxable.
One of our client has taken exemption under Notification No. 33/2012 of Central Excise. Goods supplied by us are capital goods for him.
Due to this exemption we are not going to charge Excise duty to him.
While manufacturing such goods, we procure items from our suppliers who charges Excise duty to us.
Now can we take CENVAT credit on such material against our regular sales which are taxable.
Madhukar N Hiregange
(Expert)
08 April 2013
No input services credits [ parts of capital goods manufactured by you are inputs] are available where the final productis exempt other than in cases where you manufacture for EOU against CT-3 or the goods are for exports.
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