Availability of input credit of excise paid on consumables by a works contractor
Our client is a works contractor who has opted for composition (Now abatement) scheme under service tax. He pays excise duty on paints and welding electrodes used for providing works contract services. A works contractor cannot take input credit of excise paid on inputs if he opts for composition scheme. The question is, can paints and welding electrodes be termed as consumables and not inputs so that excise duty paid on the same can be availed? Does the act make a distinction between inputs and consumables for the provisions of cenvat credit?
Humble request. Please guide
CAclubindia
