Cenvat Credit on Luboils

[Mathurthi RamKumar]

Dear Sir,

Kindly confirm kraft paper manufacture can avail cenvat credit for lub oils and MP Grease (Enklo 15 and Parthan EP 460).

Its urgent.

Regards

M.RamKumar

[VINOD KUMAR]

He can surely avail if these goods are used in relation to manufacture. Only on light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol is not available.

[YAGAY and SUN]

Dear Ram,

It is a settled legal position that consumables like lubricants are eligible for availment of CENVAT credit. Therefore, you can avail the CENVAT credit on such items.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mathurthi RamKumar]

Thank you for reply sir.

AI Summary

CENVAT credit available for lubricants and greases used in manufacture, but not for diesel or petrol fuels. Lubricating oils and greases used in relation to the manufacture of kraft paper are eligible for CENVAT credit; however, credit is not available for light diesel oil, high speed diesel oil or motor spirit.