Cenvat credit

[Gopal B]

Dear sir,We are manufacturers.the Raw material which is used for FG is selling local as well as exports.shall I take full credit of cenvat or proportionately on my inputs.Pls advise.

[Rajagopalan Ranganathan]

Sir,

You can take the full duty paid on inputs as credit which is used in the manufacture of FG. There is no question of taking proportionate credit. The credit of duty paid on inputs used in the manufacture of FG which is exported can be utilized for payment of duty on FG sold locally. If it is not possible then you can claim the refund of the same under rule 5 of Cenvat Credit Rules, 2004.

[Mahir S]

Yes, you can avail total cenvat credit, as discussed above.

AI Summary

Cenvat credit can be fully availed on inputs used in goods for local sale and export; unutilized credit refundable. Cenvat credit on duty paid for inputs used in manufacture of finished goods sold locally and exported may be fully availed without proportionate apportionment; the credit can be utilized for payment of duty on locally sold finished goods and, if not utilizable, the unutilized credit is refundable under Rule 5 of the Cenvat Credit Rules, 2004.