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 on capital goods: allowable when partly used for dutiable production, disallowed if exclusively for exempt production.
Capital goods used partly for dutiable production and partly for exempt production are eligible for Cenvat credit; capital goods used exclusively for exempt goods or services are not eligible. An SSI exemption will not deny credit where it would otherwise be available. This reflects the allocation and exclusion principles under the Cenvat credit rules for capital goods.