Availing of cenvat credit

[ASHOK AMIN]

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 ?

AI Summary

Cenvat credit entitlement: allowed for imported inputs used in manufacture though invoice includes trading goods, subject to records.
Cenvat credit may be availed on imported items used in manufacturing even if the same bill of entry lists trading goods, provided the manufacturer retains original import documents, maintains clear segregated records evidencing which items enter production, uses photocopies for the trading unit as needed, and ensures no evasion or prohibited trading from the manufacturing premises.