Cenvat Credit

[MUNIRAJ SRINIVASAN]

We are manufacturing of backery products  one is regular rate of duty @12% one is we opt to pay duty @  2% can we takeinput creidt  excise/ Service tax kindly advise legal provisions

[PAWAN KUMAR]

As per my view, cenvat will not be admissible to you. As the rate of duty imposed on your article was @1% which later on was increased to 2%. This rate of duty was without availing cenvat credit on inputs and input services.

AI Summary

Cenvat credit unavailable where taxpayer opts a low-duty scheme that excludes input and input-service credit. Where a manufacturer opts to produce certain goods under a reduced-duty scheme that was applied without availing input and input-service credit, Cenvat credit is not admissible for those goods; the exclusion of input and input-service credit under the lower-duty option determines ineligibility for Cenvat.