we have registered manufaturing unit,
Products > PVC Pipes
Query > we have received a order from Customer, for 4 sizes,
we manufactered only 3 sizes, we booughtout( sold) from others the above 1 size,
can we take Cenvat credit on above boughtout size, Please clarify.
Thanking you sir,
V.Laxmaiah
Cenvat Credit Not Applicable on Traded PVC Pipes; Only Eligible for Inputs Used in Manufacturing Process A manufacturing unit producing PVC pipes inquired about the eligibility of Cenvat credit for one size of pipes bought from another supplier, while manufacturing the other sizes in-house. Two respondents clarified that Cenvat credit is applicable only to inputs used in manufacturing, not on traded goods. Since the bought size is sold without any processing, it is considered trading, and thus, Cenvat credit cannot be claimed. It was advised to maintain separate accounts for such traded items. (AI Summary)
TaxTMI 
TaxTMI 
