Captive Consumption under CE rules-Clarification

Dear Sir,

We are the Mfrs and Exporters of basic chemicals. Presently we are purchasing Packing materials from outside and availing Cenvat Credit Benefit. Now we have started Packing material production unit in our plant. In this regard kindly clarify the position of Cenvat benefit of Inputs used for manufacture of packing material with in the plant. The resulting packing material is used for packing of our dutiable finished product for both Domestic & Export clearance purpose.

Replies (1)

As per the Cenvat credit rules we can take credit of the duty levied on  input & capital goods as defined in the Excise act.Hence you can take credit for the input used in the manufacturing of the Packed materials subject to rule 6 of cenvat credit rules which restricts the credit of cevat on the exempted FG.

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