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Free sample

Amitabha Mukherjee (Sr. Manager, GST) (253 Points)

04 April 2013

When we are getting Free Sample along with proper excise doc. (duplicate for transporter copy), from different parties whether we can claim cenvat credit on the basis of that doc. or not. Mind it, that material reced on FOC basis. We have no liablity to pay the amount on that FREE SAMPLE MATERIALS. In this case whether we can demand CENVAT Credit or Not ?

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2 Replies

pahuja (C.A Final Student ) (472 Points)
Replied 04 April 2013

Hi Amitabha

As long as imported goods have been used in relation to manufacture of excisable goods, you can avail cenvat credit of CVD paid on such goods even though such goods have been received free of cost or in your case as a free sample.

Thanks & Regards

Suraj pahuja

pahujasuraj & Associates

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 05 April 2013

Cenvat Credit can only be taken if the material received is either utilised in manufacturing or in providing Output services.If the free sample received fulfill this creteria you can avail the same otherwise not.Here the core point is if the Excise duty is paid on the material received the credit can be availed if the same is used and utilised in manufacturing or in providing output services,irrespective of the fact that the same was procured free or after payment.