Dear Sir,
We are the manufacture of automobile parts.We are purchasing lpg gas for paint shop to do painting for our parts.
Our question is whether the excise duty paid by the supplier is eligible for cenvat credit and tnvat input credit .
Kindly clarify.
Thanks and Regards,
S.ramakrishnan.
Auto Parts Maker Seeks Input Credit for LPG in Paint Shop: CENVAT Possible, TNVAT Denied Under Schedule E A manufacturer of automobile parts inquired whether excise duty paid on LPG gas used in their paint shop is eligible for CENVAT and TNVAT input credit. Responses varied, with some experts agreeing that CENVAT credit is generally available for LPG as it is used in manufacturing finished goods, while others noted the absence of specific denial in CENVAT Credit Rules, 2004. However, it was highlighted that input tax credit under the state's VAT Act is not permissible for LPG used as fuel in manufacturing, as it is listed under Schedule E with 'Nil' ITC. (AI Summary)
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