TaxTMI 
TaxTMI 
Sir
We are manufacturer and product PT is our Raw Material falling under chapter heading 27101219 which attract excise duty @ 14% + Rs. 15/ltr. Please let me know whether Cenvat credit is available on Rs. 15/ltr?
Cenvat credit on additional excise duty or Rs.15/ltr
28 Jan 2013 
1 Reply 
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Cenvat credit entitlement extends to specific and ad valorem duty components where the input is not excluded by definition.
Cenvat credit depends on whether the material qualifies as an "input"; the exclusion expressly covers "Motor Spirits commonly known as petrol" and not all motor spirits. If an input is eligible, the mode of duty - ad valorem, specific per unit, or a mixture - does not prevent Cenvat credit unless the Rules explicitly disallow credit on that duty component. (AI Summary)
Cenvat credit depends on whether the material qualifies as an "input"; the exclusion expressly covers "Motor Spirits commonly known as petrol" and not all motor spirits. If an input is eligible, the mode of duty - ad valorem, specific per unit, or a mixture - does not prevent Cenvat credit unless the Rules explicitly disallow credit on that duty component. (AI Summary)