Cenvat credit - free of cost goods

[Guest]

Can we avail the cenvat credit on goods received free of cost? These goods are used in excisable final product.Pls refer any citation.

[Guest]

CENVAT credit on goods can be taken immediately on its receipt in the factor, provided it falls under the definition of 'input' under CCRules. There is no condition that payment is to be made for the goods received to avail CENVAT, unlike services.

AI Summary

Cenvat credit on free goods allowed when they qualify as inputs, available immediately upon receipt, unlike services. Cenvat credit on goods received free of cost is allowable if the goods qualify as input under the Cenvat Credit Rules and may be availed immediately on receipt in the factory for use in an excisable final product; no payment is required to claim the credit, distinguishing the position from services.