CENVAT credit on Fly ash

[Asked by Guest]

sir,

One of my fly ash supplier supplies Fly ash @ ED 2% as that supplier do not avail credit on Coal. Can i avail CENVAT credit of ED paid for Fly ash?.

[KASTURI SETHI]

In my view restriction is on the supplier who pays concessional rate of duty and not on the purchaser.

[Rajagopalan Ranganathan]

Sir,

If the supplier issues a valid invoice certifying payment of duty on fly ash you are eligible to take credit of such duty paid.

[YAGAY and SUN]

You can avail the CENVAT credit on Fly Ash provided on finished goods you must be paying Central Excise Duty. We endorse the views of the Experts and for details/better understanding please check Notification No. 01/2011-C.E. dated 01-03-2011 which enumerates that provided that nothing contained in this notification shall apply to the goods in respect of which credit of duty on input or tax on input services has been taken under the provision of the CENVAT Credit Rules, 2004

[khushboo mehta]

central excise notification no 1/2011,16/2012, 3/2011 point no. 3(rule 3 )

please go through above notifiations

Ed @ 2% cannot be availed.

[Rajagopalan Ranganathan]

Sir,

As per Notification No. 1/2011-CE the goods which are liable to duty @2% will be treated as exempted goods for the purpose of availing credit of duty paid on the inputs and input service utilized for the manufacture of the said goods. There is no bar to avail the 2% duty paid under Notification No. 1/2011-CE as credit under Cenvat Credit Rules, 2004.

AI Summary

CENVAT credit on fly ash: credit may be claimed if supplier issues a valid duty-paid invoice despite concessional treatment.
Entitlement to CENVAT credit on fly ash supplied at a concessional duty rate turns on factual certification: if the supplier issues a valid invoice certifying duty payment the purchaser may claim credit under the Cenvat Credit Rules. The forum also records conflicting views about a notification that treats concessionally rated goods as exempt for input-credit purposes, with some commentators reading that treatment as preventing credit and others asserting no bar to credit of duty actually paid.