Cenvat credit availability

[Guest]

we have purchase a furnace oil for our finished goods for heat treatement. also we are use that furnace oil for our job work or labour charge materials we shall take full credit of that furnace oil invoice. shall we debit the duty the furnace oil we shall use for job work materials.

AI Summary

Cenvat Credit Eligibility for Furnace Oil in Job Work: Full Credit Possible if Principal Pays Excise Duty A query was raised regarding the availability of Cenvat credit for furnace oil used in both finished goods production and job work or labor charge materials. The concern was whether full credit could be taken and if duty should be debited for furnace oil used in job work. The response clarified that the ability to avail Cenvat credit depends on the nature of the job work activity. If the principal (raw material supplier) pays the excise duty, Cenvat credit can be availed.