Question

What do you understand by CENVAT? Write in brief about CENVAT Credit Rules.

Answer 1

Hello friend....

CENVAT means Central Value Added Tax.CENVAT credit is a credit in respect of central excise on inputs purchased for the manufacture or duty paid in relation to the manufacture of the final product.

Rules:- Where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under rule 21 of the Central Excise Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or production of said goods shall be reversed.


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