Cenvat Credit utilisation

[karthik katakam]

Dear All,

There are two different activities of an assessee which are not related to one another i.e., Taxable service, Manufacturing Goods.

Can Credit availed on input service related to output service be which is under one registration number of the assessee be set off against output excise duty liability with different registration number of the same assessee.

[JSWSEVERFIELD STRUCTURESLIMITED]

Dear Sir,

As they are two separate activities which are not related in business activites, you cannot utilise the cenvat availed on the Input service against excise duty liability. Better you can utilise the credit against Out put service.

AI Summary

Cenvat credit utilisation: input-service credit for a taxable service cannot be applied to excise duty for unrelated manufacturing. Credit availed on input services related to a taxable output service cannot be utilised to discharge excise duty liability of an unrelated manufacturing activity under a different registration; such credit must be used against the output service for which it was claimed.