CENVAT CREDIT

[DEEPAK SHARMA]

One of our clients is large manufacturer of corrugated box, they have installed Boiler in side factory, they also having understanding by an agreement with IOCL, a tanker has also installed in side factory to store the Diesel to run the Boiler in relation to manufacturing of finished goods. the IOCL will diriectly make bill to our client name. is the Cenvat Credit of Diesel is admissible to our client on receipt of the said input.

Please also refer us notifications, circular or trade notice. Thanks

[JAMES PG]

Rule 2 (i) (A) of Cenvat Credit Rule excludes Diesel & Petrol for the purpose of Cenvat credit

[sv bhasker]

No. Cenvat credit is not admissible on Diesel as correctly stated by Mr.James

 

 

[YAGAY and SUN]

CENVAT credit is not available on Diesel and Petro.

 

AI Summary

Cenvat credit on diesel and petrol is not admissible under the statutory exclusion, per advisory responses. The query concerns whether Cenvat credit is admissible on diesel supplied and invoiced to a manufacturer for use in an on-site boiler. Advisory responses state that Cenvat credit is not available on diesel and petrol; respondents reference the exclusion under Rule 2(i)(A), concluding that input tax credit cannot be claimed for diesel/petrol used in this manner.