Cenvat credit on free trade sample

Availment of credit is dependent upon fulfiling following rules

Item should be eligible (Input,capital good, input service, rule 2(k),2(a),2(l) resp.)

There must be supporting document (Rule 9)

Only eligible duties (Rule 3)

Received in factory or by service provider (rule 4)

Not bringing in Rule 6

So there is nothing which restricts from taking credit

Logically also, double taxation is to be avoided. Manufacturer of such goods must have paid duty because he can not remove the good without charging Excise duty. If credit is denied to the receiver then duty paid on such goods will add into cost of their final product and when you will do the manufacturing then you will again charge excise duty on it, so there will be double taxation if credit is not admissible

Entire duty paid by supplier-manufacturer is available as credit to user of inputs. But input should be used in the factory by the manufacturer of final product.