cenvat credit elgible for lpg gas

[Ramakrishnan Seshadri]

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.

AI Summary

Cenvat credit on LPG generally available, but state input tax credit may be restricted depending on usage and schedule exclusions.
CENVAT credit for duty paid on LPG is generally available under the CENVAT Credit Rules when LPG is used as an input in manufacturing finished goods, but availability is fact sensitive and may be denied if LPG is not integral to production; additionally, State VAT law may specifically exclude input tax credit for fuels under statutory schedules, so VAT credit on LPG can be barred even where central CENVAT is claimable.