TaxTMI 
TaxTMI 
Dear Sirs, Our management has ordered ice cream to all staffs and workers. As per order ice cream manufacturer has executed order and issued bill by charging excise duty 2% on ice cream under chapter 21050000. Can we avail cenvat credit on ice cream Bill.
CENVAT CREDIT ON ICE CREAM.
17 Apr 2017 
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Cenvat credit ineligibility on employer-provided food where items lack nexus with manufacture and are excluded as employee consumption.
Cenvat credit on ice-cream supplied to staff is not allowable because food items used primarily for employee consumption are excluded from the definition of inputs, and a proviso in the credit rules renders commodities charged under the notified concessional duty ineligible for credit; absent a demonstrable nexus between the ice-cream and the manufacture of excisable final products, promotional or motivational supplies do not qualify for credit. (AI Summary)
Cenvat credit on ice-cream supplied to staff is not allowable because food items used primarily for employee consumption are excluded from the definition of inputs, and a proviso in the credit rules renders commodities charged under the notified concessional duty ineligible for credit; absent a demonstrable nexus between the ice-cream and the manufacture of excisable final products, promotional or motivational supplies do not qualify for credit. (AI Summary)