DHIREN (EXCISE OFFICER) (48 Points)
28 September 2012Dear sir
We are mfg exciabel goods and also we are mfg our raw material pet flake it is non exciseable , if we sales of raw material insted of consumed in our final product,
Can we take cenvat credit / service tax credit / capital goods credit which is invole in raw material mfg plant , please explain
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 28 September 2012
AS PER THE PRIME RULE....THAT READS....CENVET CREDIT WILL BE AVAILABLE ON ANY INPUTS, CAPITAL GOODS WHICH ARE USED IN OR IN RELATION TO THE PRODUCTION OF A EXCISEABLE GOODS......AS LONGS AS YOU ARE PRODUCING THE EXCISEABLE GOODS .....U CAN AVAIL THE CREDIT ON YOUR INPUTS .........
BUT IF U MERELY SALE THE RAW MATERIAL THAT IS MANUFACTURED BY U AND THAT NOT EXCISEABLE AS WELL....SO NOW THIS RAW MATERIAL WILL BE THE FINAL PRODUCT FOR U IF U SALE IT ......AS UR THIS FINAL PRODUCT IS NOT EXCISEABLE SO U CAN NOT TAKE THE CREDIT ON INPUTS......
I M NOT SURE ABOUT CREDIT ON CAPITAL GOODS .......
PLEASE CORRECT ME ....IF I AM WRONG.....
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 28 September 2012
if final only products which are exempted, then no excise for inputs/ capital goods/service tax,
CAclubindia
