Cenvat Credit

[PAWAN KUMAR]

Respected All,
Kindly share your valuable opinion on the following :
An manufacturing company (A) registered under excise & service tax is manufacturing excisable goods. Company (A) is also doing contract manufacture of exciseable goods for its client (B). The client (B) is providing all raw materials on which manufacturing company (A) is availing cenvat credit and paying duty on value addition as per the practice prevailing as per case law Ujagar Prints. The manufacturing company (A) is also utilizing some services for their own excise manufacturing as well as contract manufacturing. Kindly provide whether cenvat credit is admissible for services utilized in both the cases to company (A).

AI Summary

Cenvat Credit Admissible for Services in Own and Contract Manufacturing, Confirm Respondents Under Ujagar Prints Case Law. A manufacturing company (A), registered under excise and service tax, produces excisable goods and also engages in contract manufacturing for a client (B), who supplies all raw materials. Company (A) avails Cenvat credit and pays duty on value addition, following the Ujagar Prints case law. The company seeks opinions on whether Cenvat credit is admissible for services used in both its own manufacturing and contract manufacturing. Three respondents confirm that Cenvat credit is indeed admissible for the services utilized in both scenarios.