Cenvat credit allows offset of duty on inputs, capital goods and input services against duty on final products and services. CENVAT Credit Rules, 2004 permit manufacturers and service providers to claim credit of duty and service tax paid on specified inputs, capital goods and input services used in or in relation to the manufacture of final products or provision of output services. Credit covers inputs incorporated or used indirectly and may be utilised to pay duty on final products or output services subject to the Rules' prescribed conditions, documentation and compliance obligations.