Input credit when availing area based exemption

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chaitanya cherukuri (Querist)
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02 May 2012 Hai Experts,

The Company in which i work has plant in Himachal Pradesh and Availing Area based Exemption from Excise. We are not taking any Input tax credit both on Raw material and Capital goods.

But my Doubt is Whether it is possible to take credit and claim refund from Excise Department.

Becuase we supply our goods Main Manufactures. If we dont take credit then it Credit Chain Gets Broken and Again our Main Manufacturer has pay tax again.

Please clarify me.

Thanks

Chaitanya

S.P.Mahanta

S.P.Mahanta (Expert)
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05 May 2012 Units in Himachal Pradesh is covered under area based exemption from levy of excise duty.You can advice your supplier of excisable goods to intimate jurisdictional AC/DC quoting relevant central excise notification no: & mention the same in invoice raised for supply made to you.This option is acceptable as well preferable under excise rule.

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chaitanya cherukuri

chaitanya cherukuri (Querist)
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05 May 2012 My doubt is whether it is possible take credit when your goods are exempt from Excise under any notification

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