Rule 6 of CENVAT credit rule 2004 applicability in case of trading in non-excisable goods, Central Excise

[Yatin Bhopi]

A manufacturer is also doing trading in non-excisable goods. As per recent amendment in rule 6 of CENVAT credit rules 2004. Manufacturer or Service provider shall follow any one option from either 1) pay 6%/7% or 2) pay an amount as determined under sub-rule (3A)

As per Section 66D (e) Trading is the exempted service.

In this case if we go for 1^st option are we need to pay 6% or 7% of value?

Please share your views.

Posts / Replies

[surya narayana]

Dear Friend,

According to my remembarance ,for the purpose of Rule 6 of CCR,2004 non excisable goods also covered. However, since you are carrying Trading activity your are under obligation to comply with the options of Rule 6 and you have to reverse/pay 7% being the Trading is a service activity.

Best Regards

Suryanarayana

[Yatin Bhopi]

Thanks Sir