TaxTMI 
TaxTMI 
can I avail cenvat credit on those items which are procured on payment of excise duty and sale these items as such after new packing and charge excise duty at the time of sales
cenvat credit
12 Jul 2013 
5 Replies 
1495 Views Asked by
Cenvat credit allowed only where repacking qualifies as manufacture; otherwise no credit and reversal or dealer treatment applies.
Cenvat credit is admissible only if repacking qualifies as manufacture (including commodities specified in Schedule III), meaning inputs are processed to produce a new product with a distinct name, character and usage. If repacking does not meet that test, credit cannot be availed and goods should be cleared on a dealer basis; any credit already taken must be reversed when goods are cleared as such or used otherwise. (AI Summary)
Cenvat credit is admissible only if repacking qualifies as manufacture (including commodities specified in Schedule III), meaning inputs are processed to produce a new product with a distinct name, character and usage. If repacking does not meet that test, credit cannot be availed and goods should be cleared on a dealer basis; any credit already taken must be reversed when goods are cleared as such or used otherwise. (AI Summary)