Rule 6(3a), Central Excise

[Umesh M V]

Dear Sir,

As per Rule 6(3a) for reversal of Input cenvat credit on exempted goods sale or exempted service, as per formula Total exempted sales + service divided by total sales x total input cenvat credit availed during the month. Pls let me know total input cenvat credit availed during the month includes credit taken on the capital goods ??

 

Posts / Replies

[Pradeep Khatri]

No, it is settled legal position that if the assesse is using the capital goods in manufacturing of exempted and dutiable goods then there is no requirement to reverse the CENVAT credit proportionately under Rule 6(3a) of the Cenvat Credit Rule, 2004 as amended from time to time.