Duty on InputsTesting Charges

[P Ovhal]

Our supplier had charged Excise Duty on rediography testing Charges of Inputs. Can we awail CENVAT credit?

[CA Rachit Agarwal]

If the input services are used for providing the output service/goods manufactured then the which is not exempted then cenvat credit upto the place of removal can be availed as per Rule 3 and Rule 2(l)of Cenvat Credit Rules, 2004.

AI Summary

CENVAT credit entitlement where input testing services are used in manufacture and the output is not exempt. If input services such as testing or radiography are employed in providing the output goods and the output is not exempt, CENVAT credit of excise duty on those input services may be availed up to the place of removal, subject to the eligibility and apportionment rules under the CENVAT framework.