Doubt in setoff of excise duty

This query is : Resolved

Sidhardh (Querist)
Follow

31 December 2011 A Paper Manufacturing company is purchasing Chemicals on which Excise duty is 5% & 10% + Ed.Cess & Sh.Ed.Cess.

Excise duty payable on manufactured Paper is 5% + Ed.Cess & Sh.Ed.Cess.

My Doubt is, is Excise duty paid @ 10% on chemical purchases is available to setoff Excise duty payable on paper production @ 5%?

Thanks in Advance.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

02 January 2012 BCD is 10%
cvd 5%,
CE edu cess:3%,
cus edu cess :3%,

If manufacturer is registered in excise, FILL UP UT-1 bond and can take CENVAT AND DEPB / DRAWBACK. IN THIS CASE NO LIABILITY OF DUTY NOT ADMISSIBLE AT THE TIME OF EXPORT.

REGARDS,