Clarification on issue relating to input duty Cenvat credit admissibility for goods exempted by Notification No. 2/2001-Central Excise dated 27-1-2001

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... New Delhi Subject : Clarification on issue relating to input duty Cenvat credit admissibility for goods exempted by Notification No. 2/2001-Central Excise dated 27-1-2001. All goods falling under the First and Second Schedule to the Central Excise Tariff Act, 1985 are exempt from whole of duties of excise leviable under the said Tariff Act and Additional Duties of Excise (Goods of Specia .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... inputs which are used in the manufacture of exempt final products. This is essential feature of the CENVAT scheme and universally applicable without any exception. In the present case, two situations can arise, one the manufacturer sells these goods to a relief agency who purchase the goods out of cash donations and second the manufacturer himself donates the goods for relief and rehabilitation wo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... er 40; (iii) black and white television sets, falling within Chapter 85; (iv) newsprint, in rolls or sheets, falling within Chapter heading No. 48.01, the manufacturer shall pay an amount equivalent to the CENVAT credit attributable to inputs used in or in relation to the manufacture of such final products at the time of their clearance from the factory, or (b) If the exempted goods are ot .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X