TMI Blogcenvat creditX X X X Extracts X X X X X X X X Extracts X X X X ..... A Govt.Company manufactures 8 -10 products. Out of which two are excicable. Can the Company claim the cenvat credit for a) service tax paid during the year on security charges / expenses.(b) excise duty paid on procurement of raw materials. Is it that cenvat credit can be availed only on serivce tax and excised duty paid on two prodcuts which are excisable.? or, the entire amount of service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x paid can be availed as modvat credit? - Reply By CA Rachit Agarwal - The Reply = As the company manufactures both exempted and excisable products, then Cenvat Credit Rule 6 of the Cenvat Credit Rules, 2004. As per the said rule, you have to maintain the separate register for the inputs/inputs services for both excisable and non excisable products and accordingly cenvat credit will be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed. Otherwise he has to choose one of 2 options as undermentioned: i) Manufacturer has to pay duty equivalent to 5% of the value of the exempted goods. ii) Pay the equivalent amount of Cenvat Credit availed on the exempted goods. - Reply By dinesh agrawal - The Reply = service tax paid on security charge, being common input service for both excisable as well as exempted goods shall be elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible to full CENVAT credit in view of Rule 6(5) of the CENVAT Rules. - Reply By Ramanujam Varadarajan - The Reply = Security charges which are common in nature is eligible for full cenvat credit as per Rule 6(5) of Cenvat credit Rules. Excise duty paid on raw materials used in relation to excisable goods is eligibel for full credit if separate records available. If not, proporate credit as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formula or payment of 5% on value of exempted goods is required to be made. - cenvat credit - Query Started By: - mak P Dated:- 24-11-2010 Central Excise - Got 3 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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