Cenvat credit query

 

This is to inform you that our company will start a factory for construction of "Cellular Light weight block".

The Raw Material is Cement , Fly Ash(Import) , Sand and Water. Therefore I would like to know that Raw Material Excise duty and CVD can be used as CENVAT Credit.

 

I would be grateful is you could throw some light on the situation by way of citing reference to circulars, policy, notices etc.

Replies (5)

Central Exices Cenvat Credit Rules 2004 says that if any input is used in the factory for manufacture of final product than the assessee can avail credit of the same for excise duty purpose.  

the matter will get clean on your taking look at defination of Input for the purpose of Excise in Central Excise Cenvat Credit Rules 2004.

Dear Harshit,

Thanks for reply.

Input EXCULES :

 

  1. any goods used for :

  • construction of a building or a civil structure or a part thereof; or

  • laying of foundation or making of structures for support of capital goods

 

The Cement , Fly Ash(Import) , Sand and Water are raw material of Blocks and

That blocks will be used for construction.

 

 

yes, That is the thing, 

The portion relating to construction is also not included in defination capital goods & hence the credit will not be available.

Please give me the confirmation :

It means CEMENT used for "Cellular Light Weight block" eligible for CENVAT CREDIT.

But if CEMENT used for construction of buliding etc is not eligible for CENVAT CREDIT 

In case Cellular Light weight block is your final product or intermediate product in couse of manufacture of final product than credit is allowed.

In case Cellular Light weight block is not your final product but is used for constuction of you building or laying down the foundation of capital goods than credit is not allowed.

 

 


 

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