Cenvat credit on excise paid on Furnace oil

[Asked by Guest]

1. We can take cenvat credit on all services on which we have paid tax to the party, although we are manufacturing company of exciseable goods (taxable)and also we can setoff against the GTA the credit amount. 2. We can take Cenvat on excise paid by us on Furnace oil or not. We are using in DG for electricity.

[Surender Gupta]

You can not avail Cenvat Credit for the purpose of payment of Service Tax on GTA. For further details, please refer to various issues discussed previously in the this section. Further, furnace oil is an eligible input.

[Vijay Chitte]

You can avail the service tax credit against dicharge your excise duty liability, not on your GTA liability. Vijay Chitte-Claris

[Ganesh Shewale]

WE ARE MANUFACTURER (SSI UNIT). CAN I TAKE EXCISE CREDIT OF FURNACE OIL (RE 100)

 

Regards,

Ganesh

ganeshs830 at the rate of gmail.com

[Pravin Parmar]

We can take Cenvat on excise paid by us on Furnace oil or not. We are using in Boiler.

[Hikal Ltd]

We can avail cenvat credit as FO will fall under consumables.

[G GOSWAMI]

It is observed from the decision of the CESTAT, Ahmedabad- 2015(8) TMI 1133 in the matter of Garden Silks Ltd. following the the decision of the Hon'ble Gujrat High Court-2014(12) TMI 876 in the matter of Panchmahal Steel Ltd., cenvat credit could be utilised for the payment of service tax on GTA service as per Rule 3 of the Cenvat Credit Rules,2004. This matter may also be taken into account.

Regards,

G.Goswami

AI Summary

Cenvat credit on furnace oil affirmed as eligible input; utilisation for GTA service tax disputed with conflicting authority.
Furnace oil used as fuel or consumable in generation of electricity or boilers qualifies as an eligible input and excise paid on it may be taken as Cenvat credit by manufacturing units. Views diverge on utilisation of service tax credit: some contributors state it may be used to discharge excise duty but not GTA service tax, whereas cited tribunal and high court decisions interpret Rule 3 of the Cenvat Credit Rules to allow use of Cenvat credit for payment of service tax on GTA services.