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.

[Surender Gupta]

All depend upon the nature of Job Working activity and / or labour charge activity. In case the excise duty is being paid by the principle (raw material supplier), you are allowed to avail cenvat credit.

AI Summary

Cenvat credit availability can follow when the principal pays excise duty and depending on job work nature. Availability of Cenvat credit on furnace oil used for heat treatment and for materials under job work depends on the nature of the job working/labour activity and on who pays the excise duty; where the principal pays excise duty on inputs consumed in job work, Cenvat credit is allowable.