CENVAT CREDIT

[Asked by Guest]

Dear Sir,

                Please tell me about Cenvat Credit.  

[YAGAY and SUN]

It is a scheme to remove the cascading impact of Central exicse duty levied on the inputs which are being used in the manufacturing of finished goods.

AI Summary

Cenvat credit prevents cascading of central excise duty by allowing input duty to be set off against output excise liability.
Cenvat Credit permits manufacturers to set off duty paid on inputs against excise liability on finished goods, removing the cascading effect of Central excise duty and preserving tax neutrality for inputs used in manufacture.