Dear Experts,
We are a manufacturing unit and also have trading unit separately. We imported 10 items, 2 for our manufacturing and 8 for trading unit which we received under one invoice from them and bill of entry. Now my querry is can we avail cenvat credit only on the 2 items which is combined with the trading items, since we are not availing the cenvat credit of the trading items. Is it permissible to take cenvat credit of the 2 items as per law ? What will be its adverse effect if the audit party later on comes to know about it ?
Manufacturing unit can claim Cenvat credit for imported items if documentation is proper, despite shared invoice with trading goods. A manufacturing and trading unit inquired about availing Cenvat credit for two imported items used in manufacturing, received with eight trading items under one invoice. The concern was whether availing credit for the manufacturing items would cause issues during audits, given the shared invoice with trading items. Experts clarified that availing credit for the two manufacturing items is permissible, as long as proper documentation is maintained and there is no evasion. Separate premises for trading and manufacturing were acknowledged, and it was advised to keep original documents at the manufacturing site and copies at the trading site. (AI Summary)
TaxTMI 
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