cenvat credit, Central Excise

[sanjay gupta]

we are producing rectified sprit for making country liquor 

I have regisreed  with state Excise department 

we have purchased capital goods and paid central excise duty thiere on 

can we take credit of central Excise Duty against sale of Rectified sprit 

Please guide us.

 

 

Posts / Replies

[Naveed S]

Your query is not clear.
However, from what i have understood, you can surely avail Cenvat credit of capital goods purchased and used in manufacturing Rectified Spirit; which appears to be your by-product and which is also cleared from the factory on payment of duty.

[Pradeep Khatri]

On liquors, the State level Excise Duty is leviable.  Since Central Excise Duty is leviable on the Capital goods, and there is no Central Excise Duty on liquor, hence you would not be eligible for availment of CENVAT credit on the Capital Goods used in the manufacturing of finished goods on which no central excise duty is applicable.

Hope this will clarify this issue.