cenvat credit can be taken on purchasing coal

[Guest]

dear experts,

we are manufacturer of specialty chemicals & all dutiable finished goods...

we are using coal in our boiler , so can we take cenvat credit on coal ?

pls. clarify..

regards,

manan

[KASTURI SETHI]

Dear Sh.Pandya Ji,

Pl. go through Notification Nos. 1/11-CE dated 1.3.11 (serial No.28) as amended vide Notification No.16/12-CE dated 17.3.12 and Notification No.12/12-CE dated 17.3.12 in this context.

[Guest]

thank you sir for your valuable reply.

sir ,if it is possible pls. clear of my issue id 110382

still nobody replied ...

regards,

Manan

[KASTURI SETHI]

Dear Sh.Pandya Ji,

Have you studied both notifications carefully or not ?

[KASTURI SETHI]

Sh.Pandya Ji,

What is the rate of Central Excise duty mentioned on invoice for purchase of coal ?

[KASTURI SETHI]

Dear Sh.Manan Ji,

Issue ID 110382 pertains to Income Tax. I do not deal with Income Tax.Out of those experts who are active in this forum, Sh.Ganeshan Kalyani, Sir is expert in Income Tax and all other fields.

[Guest]

sir,

i tried to understand those notification suggested by you, in that not.1/11-CE dated 1.3.11 (serial No.28) , it was eligible to take credit and Notification No. 16/2012-Central Excise it was ommited sr.no. 28. & Notification No. 12 /2012-Central Excise, it mentioned 1% if no credit has been taken on input.

so basically it describes that we can't take credit of coal ..

still i don't know the rate of central excise duty but party would passed on duty ..

sir , pls. clarify , whatever i understand is correct , if wrong pls. explain.

regards,

manan

[KASTURI SETHI]

Dear Manan Pandya Ji,

In Notification No.1/11-CE, Concessional rate of duty 1% is available with the condition that no credit will be available. And in 16/12-CE, concessional rate of duty has been increased to 2%. Condition is same. In Notification No.12/12-CE, also no credit is available. In other words, if your supplier issues invoice bearing concessional rate of duty in respect of coal, you cannot take credit.

 

[Guest]

thank you very much sir,

i am really thankful to you.. i am totally satisfied from this answer..

regards,

Manan

AI Summary

Chemical Manufacturer Cannot Claim CENVAT Credit on Coal with Concessional Duty Rate per Notifications 1/11-CE, 16/12-CE, 12/12-CE. A manufacturer of specialty chemicals inquired about the eligibility to claim CENVAT credit on coal used in their boiler. An expert responded by referencing specific notifications, indicating that credit cannot be taken if a concessional duty rate is applied. The notifications mentioned include 1/11-CE, 16/12-CE, and 12/12-CE, which outline the conditions under which credit is not available. The manufacturer confirmed their understanding that credit cannot be claimed when the supplier issues an invoice with a concessional duty rate, expressing satisfaction with the clarification provided.