BYE PRODUCT PROPORTIONATE CREDIT

[george thomas]

Dear All

Our Company engaged in the manufacture of BIODIESEL production Biodiesel is exempted form Excise Duty and in the manufacture of Biodiesel one input used is Sodium Methoxide.In the manufacure of Biodiesel Bye Product is Crude Glycerin which we are using either as input for the manufacture of Refined Glycerin which is dutiable or selling to other industries.. Kindly clarify whether we can avial cenvat credit for the duty paid ion Sodium Methoxide proportionately

AI Summary

Debate Over CENVAT Credit Eligibility for Biodiesel By-Product Highlights 2015 Legal Changes on Duty Payment A company involved in biodiesel production, which is exempt from excise duty, inquired about availing CENVAT credit for Sodium Methoxide used in production. The by-product, Crude Glycerin, is either used to produce dutiable Refined Glycerin or sold. One response indicated that CENVAT credit could be claimed on the by-product if duty is paid and used in dutiable product manufacturing, suggesting a cost accountant's certificate for proportionate credit. Another response disagreed, stating that the legal position changed in 2015, disallowing proportionate CENVAT credit.