Can any one explain me the Rule 7 of Cenvat Credit Rules, 2004.
In this rule there is the input service provider which has both types of units, one producing exempted and another unit producing dutiable goods. In this case units raised bills in the name of ISP and ISP has distributed the input to its dutiable units as per his discretion and not distributed to exempted units because as the their final product/ service is expempted they can not claim the input of such goods.
Say for e.g. the ISP has two unit of each type i.e. one exempted and one dutiable units. Both units raised bills in the name of ISP having input credit of Rs.500 & Rs.1000 respectively. Now my Question is that how the ISP distribute the such input of Rs.1500 in total to their units.
- Whether it can distribute Rs.1000 as Rs.500 arise from expempted unit hence, redundant.
- Whether it can distribute Rs.1500 in full to dutiable units?
CAclubindia
