We are manufacturer of Liquid Carbon Dioxide & Dry Ice. Presently our plant is under shut down. To fulfil the requirement of our customers for Dry Ice, we are purchasing Liquid Carbon Dioxide on payment of Excise duty and converted the same into Dry Ice. We shall be taking Input CENVAT credit on Liquid Carbon dioxide purchased / received by us and Excise duty shall be paid while removing DRY ICE (Finished Goods) from our factory.
Kindly let us know whether manufacturer of Liquid Carbon Dioxide & DRY ICE, shall do such type of job work in the his factory premises? Is their any excise litigation in future for such transactions. Kindly clarify.
Regards,
VINAY
Company Queries Legitimacy of CENVAT Credit on Liquid CO2 Purchase Amid Plant Shutdown; Seeks Clarity on Excise Duty Compliance. A manufacturer of Liquid Carbon Dioxide and Dry Ice, whose plant is currently shut down, is purchasing Liquid Carbon Dioxide to convert into Dry Ice to meet customer demand. They plan to take Input CENVAT credit on the purchased Liquid Carbon Dioxide and pay excise duty on the Dry Ice produced. The query seeks clarification on whether this type of job work is permissible within their factory premises and if there might be future excise litigation. A response raises concerns about the legitimacy of claiming CENVAT credit while the plant is not operational, potentially leading to legal issues. (AI Summary)
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