Cenvat Credit

[Rizwan Ullah]

Assessee is involved in the manufacturing of Excisable ( Dutiable ) and Non- Dutiable ( Exempted ) product.

Common water treatment plant ( Sewerage) is being set up . Can cenvat credit be availed on capital goods purchased for the set up of such sewerage plant.

AI Summary

Cenvat Credit Allowed on Capital Goods for Common Use in Dutiable and Exempted Goods, Per Rule 6(4) Interpretation. An assessee involved in manufacturing both dutiable and non-dutiable products inquired about availing Cenvat credit on capital goods used for a common water treatment plant. The first respondent clarified that Cenvat credit can be taken if capital goods are used for both dutiable and exempted goods, but not if used exclusively for exempted goods, unless the exemption is under the SSI exemption. The second respondent agreed with this interpretation, referencing Rule 6(4) of the Cenvat Credit Rules.