banner_ad

CENVAT on FUEL

1254 views 3 replies

If a manufacturing firm buys an OIL (except for LDO, Petrol & HSD) and uses it for fuel (generating heat) to manufacture finsihed goods...which are sold after levying Excise Duty.....can CENVAT credit be taken for the Excise Duty paid in the purchase of said Fuel.

 Kindly elaborate with reasons for the answer given....

Replies (3)

you can definitely take credit for other industrial fuels  except petrol,diesel LDO but case laws should be elobrated by experts only like Mr  Madhukar N.Hiregange on this point

Fuel like furnace Oil which is used in boiler for generating heat and without it's use the finished product can not be manufactured, the same view is expressed in Reliance case where Orissa High Court gave a favourable judgement understanding the use of the product as an essential consumables. It is not a valid plea that if anything is consumables then it's physical existance must be present in finished product which is normaly taken at department level. My view is it is definitely taking part in value addition process. I agree that physical existance as normally missing in fuel like coal , electricity etc which is certainly not cenvatable. But item like furnace oil is an essential consumables which take part of the process of manufacturing and without it's use the finished product would not be come into existence would definitely be cenvatable. But for this, the entire flow chart of the use of furnace oil may be submitted so that the relationship can be established.

definitely, excise duty paid on fuel (other than LDO, HSD, petrol) can be availed as credit. in fact, the definition of input in rule 2(k) of CCR,2004 itself provides:

input means...................................................................

and includes goods used as fuel ,etc within the factory.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details