Claim of Cenvat Credit on Solar Power System

[Guest]

Hello...we are the manufacturer of solar photovoltaic power system. The same has been exempt under excise by Notification no. 12/2012 We have paid input tax for purchase raw material. Plz suggest how to take claim of the input tax paid along with the applicable section. Also state relevant case law ,if any 

[YAGAY andSUN]

Please specify the serial number of entry against which your product has been mentioned in the Notification no. 12/2012.

[Vijay kumar]

Hello, it seems your goods are exempted under "non-conventional energy devices or systems specified in List 8" as per sl.no.332 of Notification no. 12/2012 CE dt.17.3.2012. In as much as the exemption is unconditional, you cannot opt to pay duty on the systems manufactured by you and thereby take input credit, in terms of Section 5A of the central Excise Act,1944. In terms of Rule 6 of Cenvat Credit Rule, 2004 credit can be taken only when the final product is dutiable. Hence, there is no way u can claim the input tax incidence borne by you. However, if u are into exports, u can get the rebate of such tax amount by following the procedure prescribed under Nofn.43/2001-CE(NT) r/w Rule 18 of Central Excise Rule, 2002, or r rule 5 of Cenvat Credit Rule, 2004. There is no case law in the matter since it is the basic concept of input credit. For any further clarification, plz mail to [email protected]

[Guest]

Notification no. 12/2012  dt.17.3.2012

Hi..

Here Manufactured  product  is  exempted  and not  inputs  required for  manufacturing. Hence you will  have  to pay duties  on inputs  as  applicable.  If  export is there, you will get refund/rebate of such duty.

 

D. Sayyad

any  more details  email me  - [email protected]

 

AI Summary

Solar Manufacturer Can't Claim Cenvat Credit Due to Excise Exemption; Rebate Possible for Exports Under Notification 43/2001-CE(NT) A manufacturer of solar photovoltaic power systems inquired about claiming Cenvat credit for input tax paid on raw materials, despite an excise exemption under Notification no. 12/2012. Respondents clarified that due to the unconditional exemption, the manufacturer cannot claim input credit as the final product is not dutiable. However, if the products are exported, a rebate can be obtained following procedures under Notification 43/2001-CE(NT) and relevant rules. It was noted that no case law exists for this situation, as it pertains to basic input credit concepts.