Reimbursement of input excise
This query is : Resolved
Sanjeev Kumar
(Querist)
16 May 2015
Can We get reimbursement of Input cenvat
Arun Kumar Singh
(Expert)
17 May 2015
Yes, you can reimbursement of input cenvat credit.
Sanjeev Kumar
(Querist)
18 May 2015
Please give details or reference
20 July 2025
Your query — "Can we get reimbursement of Input CENVAT?" — needs a bit of clarification in terms of what exactly you're asking. However, I’ll explain the two possible interpretations and their answers:
✅ 1. If you're asking:
Can we recover or pass on the Input CENVAT credit (excise duty) to a client or party as "reimbursement"?
Answer:
No, you cannot separately reimburse CENVAT credit. CENVAT is a credit available to the manufacturer or service provider under the CENVAT Credit Rules, 2004, and it is not reimbursable between parties.
CENVAT credit is not a recoverable cost — it’s a benefit that offsets your own excise or service tax liability.
You can’t raise a bill to your client saying “Input CENVAT reimbursed.”
✅ 2. If you're asking:
Can we claim or avail input CENVAT credit on eligible inputs, capital goods, or input services?
Answer:
Yes, subject to conditions under the CENVAT Credit Rules, 2004, you can avail CENVAT credit of:
Excise duty on inputs and capital goods, and
Service tax paid on input services used in the provision of output goods/services.
📌 Conditions include:
Inputs/services must be used for providing taxable output services or manufacturing dutiable goods.
Proper tax-paying documents (excise invoice, service tax invoice) must be available.
Credit must be taken within 1 year from the date of invoice (as per 2015 amendment).
⚠️ Important Note (Post-GST context):
If your question is recent, note that CENVAT Credit system was replaced by Input Tax Credit (ITC) under GST from July 1, 2017.
If this is related to pre-GST period (like your date — May 2015), then CENVAT Credit Rules apply.
✅ 1. If you're asking:
Can we recover or pass on the Input CENVAT credit (excise duty) to a client or party as "reimbursement"?
Answer:
No, you cannot separately reimburse CENVAT credit. CENVAT is a credit available to the manufacturer or service provider under the CENVAT Credit Rules, 2004, and it is not reimbursable between parties.
CENVAT credit is not a recoverable cost — it’s a benefit that offsets your own excise or service tax liability.
You can’t raise a bill to your client saying “Input CENVAT reimbursed.”
✅ 2. If you're asking:
Can we claim or avail input CENVAT credit on eligible inputs, capital goods, or input services?
Answer:
Yes, subject to conditions under the CENVAT Credit Rules, 2004, you can avail CENVAT credit of:
Excise duty on inputs and capital goods, and
Service tax paid on input services used in the provision of output goods/services.
📌 Conditions include:
Inputs/services must be used for providing taxable output services or manufacturing dutiable goods.
Proper tax-paying documents (excise invoice, service tax invoice) must be available.
Credit must be taken within 1 year from the date of invoice (as per 2015 amendment).
⚠️ Important Note (Post-GST context):
If your question is recent, note that CENVAT Credit system was replaced by Input Tax Credit (ITC) under GST from July 1, 2017.
If this is related to pre-GST period (like your date — May 2015), then CENVAT Credit Rules apply.
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