Cenvat credit on machines utilised both for own manufacturing as well as job work.

[Narendra Soni]

Dear Expert,

We are manufacturer and also doing job work of other units.Our machines are utilised both for our own manufacturing as well as job working.Can we avail cenvat credit on machines which are utilised both for own manufacturing and job work products.

Tahnks.

AI Summary

Manufacturers can claim CENVAT credit on machines used for own production and job work, excluding exempt goods. A manufacturer inquires about the eligibility to claim CENVAT credit on machines used for both their own manufacturing and job work for other units. The consensus among respondents is that CENVAT credit is permissible as long as the machines are not used exclusively for manufacturing exempted goods. The replies confirm that this is a settled legal position, with agreement from multiple contributors, including Yagay and Sun, Mariappan Govindarajan, and Kasturi Sethi, who all affirm the correctness of this interpretation.