CENVAT CERDIT UNDER ABATEMENT

[SURYAKANT MITHBAVKAR]

Our vendor raise excise invoice and charged excise with abatement discount @35%.

In above case can we avail cenvat credit against the same invoice since material taken as input for our final product which is excisable.

Pl. advise.

[PAWAN KUMAR]

Dear Sir,

As per my view, the amount of duty which the supplier has charged on their invoice, is eligible as cenvat credit for you. You may claim cenvat credit.

[KASTURI SETHI]

In Central Excise there is no such restriction except notification no.1/11-CE dated 1.3.11 as amended and here is not that case. Such like restriction is in Service Tax i.e. either avail abatement or Cenvat Credit facility.

I endorse the views of Sh.Pawan Kumar, Sir.

[Ganeshan Kalyani]

Yes the credit is eligible.

AI Summary

Cenvat credit entitlement permitted where supplier invoices excise duty after abatement; service tax abatement rules differ. Whether Cenvat credit can be claimed where the supplier issues an excise invoice charging duty after applying an abatement for goods used as inputs in an excisable final product; contributors conclude the duty shown on the supplier's invoice is eligible for Cenvat credit, noting no applicable Central Excise restriction in the facts and distinguishing Service Tax abatement-credit rules.