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Excise

Aashish Tiwari (Audit, finance) (429 Points)

19 May 2011

Dear all,

My queiry relateds to cenvat credit. i have described the cases.. i have a common tank for Furnace oil and it is used for both excisable & non excisable goods manufacturing.. Wheather, i can avail the CENVAT credit used on excisable goods which is supplied from the common tank of furnace oil?? Please do needful in this matter..

Thanks & Regards

Ashish h tiwari

(MBA, IPCC)

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7 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 19 May 2011

as exempted goods are not eligible for input credit, so you have to reverse the proportionate credit whcih are used in exempted goods on periodical basis. ( preferred monthly or at lower intervals)

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CA Mohit Ghabrani (Consultant) (112 Points)
Replied 19 May 2011

You will have to reverse the credit.

Durga prasad Ambati (Taxation, Pursuing CA) (737 Points)
Replied 19 May 2011

Dear ashish

You have to reverse the Cenvat Credit wrong availament which is used for non-excisable goods praportionate basis.

Praportinate basis means , Praportionate to finished goods. In this case you have give a statement to Central exicise authorities and get ackowlegement for audit purpose.

(Guest)

yes the credit for non-excisable goods will have to b reversed..

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 20 May 2011

Originally posted by : RITIKA CHHABRA
	yes the credit for non-excisable goods will have to b reversed..

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CA SAHIL MITTAL (JOB) (240 Points)
Replied 20 May 2011

Rule 6 of CCR,04 is applicable... you may reverse 5% of Total value of goods (exempted as well as dutiable) or you have to reverse proportionate credit.

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 21 May 2011

Originally posted by : Sahil Mittal CA Final
	Rule 6 of CCR,04 is applicable... you may reverse 5% of Total value of goods (exempted as well as dutiable) or you have to reverse proportionate credit.