cenvat credit

[sanjay gupta]

we are producing rectified sprit for making country liquor 

I have regisreed  with state Excise department 

we have purchased capital goods and paid central excise duty thiere on 

can we take credit of central Excise Duty against sale of Rectified sprit 

Please guide us.

 

 

[Mahir S]

Your query is not clear.
However, from what i have understood, you can surely avail Cenvat credit of capital goods purchased and used in manufacturing Rectified Spirit; which appears to be your by-product and which is also cleared from the factory on payment of duty.

[YAGAY and SUN]

On liquors, the State level Excise Duty is leviable.  Since Central Excise Duty is leviable on the Capital goods, and there is no Central Excise Duty on liquor, hence you would not be eligible for availment of CENVAT credit on the Capital Goods used in the manufacturing of finished goods on which no central excise duty is applicable.

Hope this will clarify this issue.

AI Summary

Cenvat credit may be unavailable where capital goods produce products subject only to state excise, not central excise.
The operative principle recorded is that Cenvat credit on capital goods is claimable only when those goods are used in manufacture of products on which central excise is payable and which are cleared on payment of duty; where the final product (here, rectified spirit) is subject only to state excise and not central excise, respondents advised that Cenvat credit would not be available.