Excise

1016 views 7 replies

Dear all,



My queiry relateds to cenvat credit. i have described the cases.. i have a common tank for Furnace oil and it is used for both excisable & non excisable goods manufacturing.. Wheather, i can avail the CENVAT credit used on excisable goods which is supplied from the common tank of furnace oil?? Please do needful in this matter..



Thanks & Regards

Ashish h tiwari

(MBA, IPCC)

Replies (7)

as exempted goods are not eligible for input credit, so you have to reverse the proportionate credit whcih are used in exempted goods on periodical basis. ( preferred monthly or at lower intervals)

You will have to reverse the credit.

Dear ashish 

 

You have to reverse the Cenvat Credit  wrong availament which is used for non-excisable goods praportionate basis.

Praportinate basis means , Praportionate to finished goods. In this case you have give a statement to Central exicise authorities and get ackowlegement for audit purpose.

yes the credit for non-excisable goods will have to b reversed..

Originally posted by : RITIKA CHHABRA

yes the credit for non-excisable goods will have to b reversed..

Rule 6 of CCR,04 is applicable... you may reverse 5% of  Total value of goods (exempted as well as dutiable) or you have to reverse proportionate credit.

Originally posted by : Sahil Mittal CA Final

Rule 6 of CCR,04 is applicable... you may reverse 5% of  Total value of goods (exempted as well as dutiable) or you have to reverse proportionate credit.

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