Cenvat Credit on PNG Gas, Central Excise

[RAM NAUDIYAL]

Dear Experts,

Earlier we have used diesel to generate electricity for factorty production. Diesel is restricted to take cenvat credit. Now we have used png gas for generate electricity. Can we take cenvat credit.

Thanks

Posts / Replies

[Pradeep Khatri]

Yes, you can.  Since in the definition of Input under Rule 2(k) of the CENVAT credit Rules as effective from 01-04-2011, inputs means ---

i  ............................

ii   .........................

iii  all goods used for generation of electricity or steam for captive use; or

iv ...........................

but excludes -

A) Light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol;

Since these goods have been specifically excluded and other than these goods all goods included, used for generation of electricity or steam for captive use, therefore, you can avail the CENVAT credit.  Please also inform the Central Excise Department accordingly, so that suppression of material plea can not  used by them.