cenvat credit on the input used for effuilant treatment plant

[sukhvinder singh]

Dear Sir ,

We are manufacturing the chemicals and while prossesing of the material , some effuilent are arise , for the treatment of the same we are using some input and steam in our effuilent treatment plant (ETP) , as per the excise authority , these material are not used  in the manufacturing activity hence credit not allowed therefore we are not availing the credit .

Please clear the same ,so that we can save a big amount with the respective notification , circular or case law

Thanks

AI Summary

Debate on CENVAT Credit Eligibility for Effluent Treatment Plant Inputs in Manufacturing; Conflicting Views and Legal Precedents A discussion on whether inputs used in an effluent treatment plant (ETP) qualify for CENVAT credit in manufacturing processes. The initial query highlights that excise authorities do not allow credit for materials used in ETPs, as they are not part of manufacturing. One response supports this view, referencing a budget change clarifying that CENVAT credit is not admissible for non-manufacturing inputs. Another response argues that inputs used in ETPs are integral to manufacturing, citing legal precedents that recognize such inputs as part of the manufacturing process, thus eligible for CENVAT credit.