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

Cenvat credit on effluent treatment inputs affirmed when treatment is integral to the manufacturing process, despite contrary administrative view.
Whether inputs and consumables used in an effluent treatment plant attached to a manufacturing unit qualify as inputs eligible for Cenvat credit when ETP treatment is treated as essential and integral to the manufacturing process; reported case law holds that apparatus and chemicals for effluent treatment are part and parcel of manufacture, while administrative/budgetary clarification asserts credit is not admissible on inputs having no relation to manufacture.