cenvat credit

[mak P]

A Govt.Company manufactures 8 -10 products. Out of which two are excicable. Can the Company claim the cenvat credit for a) service tax paid during the year on security charges / expenses.(b) excise duty paid on procurement of raw materials. Is it that cenvat credit can be availed only on serivce tax and excised duty paid on two prodcuts which are excisable.? or, the entire amount of service tax paid can be availed as modvat credit?

AI Summary

Company Queries Cenvat Credit Eligibility for Security Expenses and Raw Materials Under Cenvat Credit Rule 6, 2004 Rules A government company manufacturing 8-10 products, with two being excisable, inquires about claiming Cenvat credit for service tax on security expenses and excise duty on raw materials. According to Cenvat Credit Rule 6 of the 2004 Rules, separate records must be maintained for excisable and non-excisable products to claim credit. Alternatively, the company can either pay 5% of the value of exempted goods or the equivalent Cenvat credit availed on them. Service tax on security charges, a common input, is eligible for full credit under Rule 6(5). Excise duty on raw materials is fully creditable if separate records are kept.