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

Cenvat credit entitlement: common input services can receive full credit; inputs for excisable goods need records or proportionate allocation.
When a manufacturer produces both excisable and exempt goods, Cenvat credit for common input services (e.g., security charges) is eligible in full where treated as common input services, provided accounting permits; excise duty on raw materials is creditable in full only if separate records trace use to excisable goods, otherwise credit must be proportionately allocated by the prescribed formula or neutralised by the specified payment in respect of exempted goods.