I am auditing a distillery. They do not avail cenvat credit anywhere, neither on input of goods nor on input services. Is this the right practice? They don't even avail cenvat credit on payment of service tax under reverse charge liability.
If possible, please support your answers with notifications or rules.
As the Central excise is not applicable to the distilleries instead state excise is applicable which is charged on MRP and payable to state government therefore the input of the cenvat can not be utilised by them against this state escise liability. therefore the adjustment is correct the Cenvat credit not be claimed by the distillerise industries.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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