input excise and service tax claim

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This query is : Resolved

yash (Querist)

02 July 2011 Dear Sir

If one company have Different Division and Excise Registration same for all Division.
one Division only manufacture other divisions are some trading and some distribution . all Division basically Garments and Textile Related only. m/f division excise is applicable .
can we claim input excise and service tax credit of another division against m/f divsion excise duty paying.
if one divsion fabric trading some time this fabric using by m/f Division.
please reply as soon as possible.

Ram Avtar Singh

Ram Avtar Singh (Expert)

02 July 2011 Traders can not take cenvat credit of excise. only manufacturing unit can take cenvat credit in which bill Asessee Excise registration mention.

Sreekumar

Sreekumar (Expert)

05 July 2011 Refer to Rule 6(3)(i)(ii)(iii)of cenvat credit rules. Cenvat credit not availabe if the suplly or service is exempted one, in this case trading is exempted one.

You are able to keep seperate account for inputs and input services, then do not take credit pertaining to trading. If this is not possible, then you need to reverse 5% as per Rule 6(3)(i).

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