Q. > Please Help: Cenvat
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381 views • Question added Dec 18, 2011 • Excise • By Saurabh Kapoor , CA , New Delhi


Case: A company is producing electricity and by using that electricity company is manufacturing dutiable product.
Query: Whether company can avail the cenvat of excise which it has paid in electricity generation process against its excise liability of fianl product?

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Vikas Kundu

19-Dec-2011 , 11:21:14 am

credit of duty paid on inputs used to manufacture electricity. In CETA electricity rate of tariff is blank(.....) mean electricity is excisable goods but not a dutiable good. Credit of duty shall be available if u r using the inputs for manufacture of dutiable goods. However in case of captive consumption ccr shall be available to adjust against the final duty to the extent that electricity is used in manufacture of dutiable goods i.e. shall not be available which is used in office. Hope the above would be suffice.

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ca anshul heda

21-Jan-2012 , 01:44:53 pm

yes, if co. generate electricity in the factory for using in manufacture of final product than co. eligible for cenvat credit.

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