Dear Sir,
We are manufacturer of automobile parts. We are receiving samples from our suppliers for manufacture of new parts on payment of excise duty by the supplier.
Our question is whether the duty paid by the supplier is eligible for cenvat credit or not. If not what is the notification.
Now our supplier is claiming the excise duty paid by them on the samples supplied. We have not taken credit for that.
Kindly clarifiy.
Thanks and Regards.
S.Ramakrishnan.
CENVAT Credit Confirmed for Excise Duty on Samples Integral to Manufacturing Process of New Automobile Parts. A manufacturer of automobile parts inquired about the eligibility of CENVAT credit on excise duty paid for samples received from suppliers. The samples are used in the manufacturing process of new parts. Various responses were provided: one suggested that CENVAT credit is applicable as the samples are integral to manufacturing; another advised taking credit as long as samples are used in production. However, one response cautioned against claiming credit if samples are kept long-term or scrapped, to avoid audit issues. Ultimately, it was confirmed that CENVAT credit is available for samples used in manufacturing finished goods. (AI Summary)
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