Ineligible List

Are there any List of Items in Excise Rules for which Credit cannot be availed? If yes, pl. provide me the rules with the list.

Thanks in advance :)

Replies (2)

Hi Deepkia

As per the Cenvat crediT rules 2(k)(ii) the following items are not eligible for Cenvat credit

1.High Speed Diesel Oil (HSD)

2.Light Diesel Oil (LDO)

3.Motor Spirit

Thank you...

 

 

(i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as
petrol, used in or in relation to the manufacture of final products whether directly or indirectly and
whether contained in the final product or not and includes lubricating oils, greases, cutting oils,
coolants, accessories of the final products cleared along with the final product, goods used as
paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in
relation to manufacture of final products or for any other purpose, within the factory of production
;
 

(ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol
and motor vehicles, used for providing any output service;

Explanation 1.- The light diesel oil, high speed diesel oil or motor spirit, commonly known as
petrol, shall not be treated as an input for any purpose whatsoever.

Explanation 2.- Input include goods used in the manufacture of capital goods which are further
used in the factory of the manufacturer;

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