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: Furnace Oil Used in Manufacturing Under Rules 4(5)(a) and Notification 214/86 Clarified A query was raised regarding the eligibility of Cenvat credit for furnace oil used in both the production of finished goods and job work or labor charge materials. The response clarified that the furnace oil used for manufacturing under specific rules, such as rules 4(5)(a) or Notification 214/86, is eligible for Cenvat credit. However, the credit must be reversed for quantities used for customers who do not pay excise duty on the manufactured or traded products.