Cenvat credit of excise duty

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Aman Thakur (Querist)

15 May 2015 Is cenvat credit is admissible of excise duty paid on delivery/shipping/packing & forwarding charges on invoice??
We have purchase a material from manufacturer..
Ass. Value=50000
Shipping charges=1000
Total value=60000
ED@12.5%=7500

I want to know that, we can take credit of excise duty Rs. 7500 or 6250.

Thanks in advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

16 May 2015 you can take the credit for Rs.7500. since the invoice calculated the ED on assesable value Rs.60000

CA Nimesh Maheshwari

CA Nimesh Maheshwari (Expert)

18 May 2015 Dear Aman Thakur,

Please note that you will be allowed CENVAT credit in respect of inputs which you use for the purpose of further manufacture of excisable goods and in respect of input services which were used for the purpose of manufacture of excisable goods.

Aman Thakur

Aman Thakur (Querist)

19 May 2015 @ CA Nimesh...sir I agree with you...I just want to know that we will take credit of excise duty charged on value including shipping charges. My senior told me to take credit less duty charged on shipping/delivery charges.

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