Excise Cenvat credit on Electricity Power bill

[Guest]

Dear Experts,

Please Guide,

Query :- Can we avail Cenvat/modvat credit on Electricity bill. where plant & machinery cost is over then ₹ 100 Crore ?

Regard

Vikram

[Rajagopalan Ranganathan]

Sir,

Electrical energy will fall under sub-heading No. 27160000 of first schedule of Central Excise Tariff Act, 1985. However the rate of duty column against the said sub-heading is blank. Therefore no cenvat duty is chargeable on electrical energy. Hence the question taking credit of Cenvat duty paid on electric energy does not arise.

[CSSANJAY MALHOTRA]

Nicely explained.

[KASTURI SETHI]

I fully support the views of both experts.

[Guest]

Thanks to all experts.

Rgd.

Vikram

AI Summary

Cenvat credit on electricity: not available where electrical energy is not subject to excise duty. Electrical energy is classified under the Central Excise Tariff but the relevant tariff entry has no rate of duty; therefore no excise duty is chargeable on electrical energy and Cenvat credit on electricity charges cannot be claimed because no excise/Cenvat duty has been paid on that input.