Cenvat Credit Eligible on Solvent Cement

[Laxmaiah Vanamamula]

Dear sir,

We have a Manufacturing in Suryapet

Product > PVC Pipes - 39172310

Query  > we have received solvent cement from others, solvent cement used for laying and Jointing,

we are not sold to Customers, we supplied free of cost for Jointing the Pipes,

can we take Cenvat credit  on Solvent cement .?

Please sujjest me,

Thanking you,

V.Laxmaiah, Sudhakar Pipes, Suryapet. 

[YAGAY andSUN]

I am afraid that your query is not clear.  Please clarify it to unable me to reply.

[ALOK GUPTA]

It appears that you are not adding the cost of solvent cement in the value of your finished goods. If so, the CENVAT Credit availment is not admissible.

[The views expressed are personal in nature]

[Mahir S]

If you can satisfy that the purchase price of Solvent Cement is included in the final assessable price of Pipes that are used for the purpose of Jointing (though the Solvent  Cement are supplied free of cost), then U can surely avail cenvat credit on Solvent Cement.

AI Summary

Cenvat credit eligibility turns on inclusion of input cost in the assessable value; inclusion permits credit, exclusion denies it. Eligibility for CENVAT credit on solvent cement supplied free for jointing PVC pipes hinges on whether the purchase price of the solvent cement is included in the final assessable value of the finished pipes; inclusion permits credit, non-inclusion renders credit inadmissible, with demonstrable evidence of such inclusion as the compliance requirement.