02 April 2009
One company engaged in providing services of " Transportation of goods through pipeline" . They mainly undertake transportation of petroleum products through pipeline owned by them. Now they mix some additive with the goods(say crude) while transporting. The additive acts as an anti-corrosive agent for the pipeline. Whether the company claim cenvat credit of the C.Ex duty paid on such additive as input.
The additive would be an input used in providing the service and would certainly be eligible for cenvat credit on the CED. It is assumed that no abatement has been claimed.
In general the availability of credit exists unless the same is barred.
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