Payment of Duty - manufacturer, Central Excise

[pravinchandra salian]

The Rate of Excise Duty has been reduced from 10% to 8% wef 24.02.09. In case of a manufacturer manufacturing dutiable and exempted goods and not maintain separate accounts of cenvat credit availed, the manufacturer shall pay an amount equal to 10% of the value of exempted goods in terms of Rule 6(3) of  CCR, 2004. In the issue under consideration inspite of reversing 10% whether the manufacturer can pay duty @8% on the value of exempted goods. The goods are exempted by virtue of Notification and not by tariff itself.

Posts / Replies

[pravinchandra salian]

Replace the word "inspite" with instead of reversing 10%

[Mukesh Kumar]

Yes, it is well settled that the exemptions notifications are optional. You can pay duty of central excise appropriate rate (8% or so) on clearance of those goods. In that there would not be any requirement to apply the provisions of rule 6 of cenvat credit rules 2004 with respect to these goods.