cenvat credit on the input used for effuilant treatment plant

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cenvat credit on the input used for effuilant treatment plant
Query (Issue) Started By: - sukhvinder singh Dated:- 2-6-2011 Last Reply Date:- 2-6-2011 Central Excise
Got 2 Replies
Central Excise
Dear Sir , We are manufacturing the chemicals and while prossesing of the material , some effuilent are arise , for the treatment of the same we are using some input and steam in our effuilen .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t treatment plant (ETP) , as per the excise authority , these material are not used in the manufacturing activity hence credit not allowed therefore we are not availing the credit . Please clear the same ,so that we can save a big amount with the respective notification , circular or case law Thanks Reply By Mangesh Lokre: The Reply: Refer the definatin of Input under CCR 2(K)(I). As well as .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the Effulant Treatment Plant treatment is not related with manufacturing of the Final Product. Also please refer to recent budget change, wherein it is clarified that the Cenvat Credit is not admissible on " Inputs which are no relation to manufacture" So in our opinion,it will be cost to you. Reply By pradeep khatri: The Reply: Dear Sukhvinder, Inputs used in effluent treatment plant are el .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... igible for CENVAT credit : - In Indian Farmers Fertilisers Coop Ltd. v CCE -86 ELT 177 (SC) =AIR 1996 SC 2542 = 1996 (5) SCC 488 = 15 RLT 498, it has been held that treatment of effluents is an essential and intergral part of the process of manufacture of plant. The apparatus used for such treatment of effluents in a plant manufacturing a particular end-product is part and parcel of the manufactru .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ing process. Hence, inputs used in the effluent treatment plant will be treated as 'used in the manufacture'. It was also held that inputs used indirectly in the manufacture will also be in the manufacture. It is not essential that ot qualify itself as raw material, it had necessailyu and in all cases to go into and be found in the end-product. Chemicals used in effluent treatment plant is input .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... for CENVAT credit - CCE v Madras Aluminium (2008) 226 ELT 342 (Mad HC DB). Thanks and Best Regards, Pradeep Khatri
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X