Urgent

Yes.

there must be input output relationship.  

in case of export u cant claim cenvat. u will receive the benefit of dutydrawback. to claim cenvat there must be domestic sale.

yes u must claim it

yes

i.         The first and the foremost condition to be fulfilled before availing Modvat is to ensure that the final product cleared by the manufacturer attracts excise levy. No credit is allowed on inputs used for the final products which are exempt or chargeable to -nil- rate of duty.

ii.         Inputs should be duty paid with proof of payment of duty failing which Modvat credit will not be available

It is your option to avail Cenvat credit or not to avail.  If you avail your cost of sales will be less than the assessee who does not avail it.

Thanks,

S. Banerjee

Dear Naveen,

It is not necessary that you claim the CENVAT on inputs however if you are manufacturing excisable goods then you can ( ofcourse at your option ) take the credit of cenvat on inputs used in the manufacture of excisable goods.

If you opt for claiming cenvat on inputs as aforesaid then you must adhere to the following conditions -

1. Receive the inputs into the factory for manufacture [ R-4(1) OF CENVAT CREDIT RULES 2004 ] CCR, 2004 In short
2. Record the quantitative details and amount of excise taken from the invoice, in the RG-23 register.[ RULE 9 of CCR, 2004 ]
3. utilize the said credit before 5th of the next month in which you receive the inputs. [ RULE 3(4) OF CCR, 2004 & RULE 8 OF CENTRAL EXCISE RULES 2002 ]

Regards,

Harshad N Godbole

Availment of Cenvat Credit on purchase of excisable product is at the option of the manufacturer. Cenvat credit is a benefit provided to avoid cascading effect of duties where the manufacturer gets facility to set off the duty paid on inputs/capital goods against excise liability on finished product. This helps in lower cost of goods to consumer. However, the purchase must be from either the manufacturer/ 1st stage/2nd stage dealer and in excise invoice, showing ecc no, date/ time of removal and authenticated by responsible official.