TMI BlogCenvat CreditX X X X Extracts X X X X X X X X Extracts X X X X ..... Suppose an Assessee is involved in manufacturing of an Excisable product A and clearing the same after payment of Excise duty as applicable say 12.5%. While making that finish product A , Assessee is using certain inputs , out of all those inputs used in manufacture of Excisable product A one input falls under an exempted category. Assesse is paying duty on that exempted category input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as applicable say 1% . Is Assessee entitled to take cenvat credit of 1% duty paid on that exempted good which is being used as input in manufacture of dutiable finished product ? - Reply By Rajagopalan Ranganathan - The Reply = Sir, As per rule 2 (d) of Cenvat Credit Rules, 2004 exempted goods means excisable goods which are exempt from the whole of the duty of excise leviable ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eon, and includes goods which are chargeable to Nil rate of duty goods in respect of which the benefit of an exemption under Notification No. 1/2011-CE , dated the 1st March, 2011 or under entries at serial numbers 67 and 128 of Notification No. 12/2012-CE , dated the 17 th March, 2012 is availed. 1% duty (at present it is 2%) duty paid under Notification No. 1/2011-CE , is an exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpted goods. therefore no credit is available. - Reply By KASTURI SETHI - The Reply = Vey quick and perfect reply by Sh.Ranganathan Sir. - Reply By KASTURI SETHI - The Reply = Pl. read 'Very' . - Reply By YAGAY AND SUN - The Reply = In this query it is not clear who is paying 1% duty. Please clarify. - Reply By Himansu Sha - The Reply = It is not clear why the assessee will p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase the exempted goods after payment of duty. As the querist mentioned 1%,if it is covered under notf. No. 1/2011 like coal (where the present rate is 1%), they will not get the credit. If the item is not covered under the said not. And exempted,but purchased after paying duty wrongly, as per certain clarification by Board, the credit will not be taken. Some decisions are also there to allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit to the buyer. But I think credit will not be available as the determination of availabity is determined by Rule 3 and the duty paid is not according to CETA . - Reply By YASHAVANTH RENUKA - The Reply = Dear Rizwan, In my opinion, If main product ( selling goods) are exemption of C.Ex. we are not suppose to take credit of E.D. the cost of the excise duty paid on inputs will be charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the product on production cost. The producer of the product will also not incurring loss on duty credit, since he has taken the E.D. payable on inputs in material cost. When selling goods are exempted under Duty Tariff no question of taking input credit on input materials. In case of Job work also duty not required to pay while sending / selling the goods through job worker. Yash-9731300563 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Cenvat Credit - Query Started By: - Rizwan Ullah Dated:- 7-3-2017 Central Excise - Got 6 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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