If one company have Different Division and Excise Registration same for all Division. one Division only manufacture other divisions are some trading and some distribution . all Division basically Garments and Textile Related only. m/f division excise is applicable . can we claim input excise and service tax credit of another division against m/f divsion excise duty paying. if one divsion fabric trading some time this fabric using by m/f Division. please reply as soon as possible.
02 July 2011
Traders can not take cenvat credit of excise. only manufacturing unit can take cenvat credit in which bill Asessee Excise registration mention.
05 July 2011
Refer to Rule 6(3)(i)(ii)(iii)of cenvat credit rules. Cenvat credit not availabe if the suplly or service is exempted one, in this case trading is exempted one.
You are able to keep seperate account for inputs and input services, then do not take credit pertaining to trading. If this is not possible, then you need to reverse 5% as per Rule 6(3)(i).
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