Dear sir
We are mfg exciabel goods and also we are mfg our raw material pet flake it is non exciseable , if we sales of raw material insted of consumed in our final product,
Can we take cenvat credit / service tax credit / capital goods credit which is invole in raw material mfg plant , please explain
AS PER THE PRIME RULE....THAT READS....CENVET CREDIT WILL BE AVAILABLE ON ANY INPUTS, CAPITAL GOODS WHICH ARE USED IN OR IN RELATION TO THE PRODUCTION OF A EXCISEABLE GOODS......AS LONGS AS YOU ARE PRODUCING THE EXCISEABLE GOODS .....U CAN AVAIL THE CREDIT ON YOUR INPUTS .........
BUT IF U MERELY SALE THE RAW MATERIAL THAT IS MANUFACTURED BY U AND THAT NOT EXCISEABLE AS WELL....SO NOW THIS RAW MATERIAL WILL BE THE FINAL PRODUCT FOR U IF U SALE IT ......AS UR THIS FINAL PRODUCT IS NOT EXCISEABLE SO U CAN NOT TAKE THE CREDIT ON INPUTS......
I M NOT SURE ABOUT CREDIT ON CAPITAL GOODS .......
PLEASE CORRECT ME ....IF I AM WRONG.....
if final only products which are exempted, then no excise for inputs/ capital goods/service tax,
CAclubindia
