DRAWING VALUE

[SHARMA NARAYAN]

Dear All

can we take cenvat credit on DRAWING vALUE which is add in Assessable Value

[MUKUND THAKKAR]

you query is not clear.. plz post in detail.

[Rajagopalan Ranganathan]

Sir,

Value of drawing is includible in the transaction value of the manufactured goods. As rightly pointed out by Shri. Mukundji what you want to take credit. If service tax is paid on such drawing then the same can be availed as credit on input service used in the manufacture of dutiable final product.

[YAGAY and SUN]

Design Charges are includible only if they relate to such goods i.e. goods under assessment - India Sugar v CCE (2009) 242 ELT 476 (CESTAT). = 2009 (2) TMI 289 - CESTAT, NEW DELHI

[YAGAY and SUN]

Design & Drawing are goods, hence, duty paid on such goods can be availed as CENVAT credit.

[KASTURI SETHI]

I support the views of Sh.Ranganathan Sir and M/s.YAGAY AND SUN, Sirs.

[Ganeshan Kalyani]

Enriching discussion by my learned experts. Thanks.

AI Summary

CENVAT credit allowed for drawing or design charges when duty or service tax is paid and they relate to manufacture.
The addendum known as drawing value or design charges is includible in the transaction value of manufactured goods when related to the goods under assessment; service tax paid on such drawing/design services used in manufacture may be availed as CENVAT credit. Where design and drawing are treated as goods, duty paid on them can be taken as CENVAT credit, subject to the requirement that the charges or goods relate specifically to the assessed goods.