Cenvat credit - free of cost goods, Central Excise

[Paawan]

Can we avail the cenvat credit on goods received free of cost? These goods are used in excisable final product.Pls refer any citation.

Posts / Replies

[V.Ramanujam]

CENVAT credit on goods can be taken immediately on its receipt in the factor, provided it falls under the definition of 'input' under CCRules. There is no condition that payment is to be made for the goods received to avail CENVAT, unlike services.