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.

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.