Cenvat credit on wheel nut spanner

Technically you are eligible to avail credit on inputs only if it used for manufacturing or production purpose. In case you are not able to use the input for manufacturing or production due some reason in that case you need to reverse the credit what you have availed.

Going by the explanation given by you, transation is purely trading in nature. So you are not eligible to take credit and also need not to pay any duty when you are clearing the goods.

If you want to pass on the input credit in such case than you need to get registered as dealer under central excise. After this you can issue dealer invoice for passing on the credit.

If you are transation is a remote one, than you can convience the auditor by showing that you have paid the duty while clearing the goods (Remember what you paid should be alteast equal to credit what you have taken)

Regards

Dayananda