Amendment of rule 6 of the CCR, 2004 - Regarding.

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..... ilment of credit used in manufacture or production of non-excisable goods. The issue has been under litigation for a while. During a manufacturing process two kinds of goods may come into existence - excisable and non-excisable. Excisable goods can further be divided into two categories - exempted and non-exempted. 2. Provisions of rule 6 of the CCR, 2004 deals with reversal of credit when a .....

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..... for a manufacturer such provision does not exist in rule 6. Any raw material, consumables or services which are used in manufacture of non-excisable goods would not attract provisions of rule 6 as the definition of exempted goods would not cover non-excisable goods. Thus rule 6 seems to have no applicability for reversal or recovery of credit on raw material, consumables and input services used fo .....

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..... r manufactures/produces both excisable and non-excisable goods, as rule 6 does not apply in such case. One possible way to address the situation would be to amend the definition of exempted goods in the CCR, 2004 such that non-excisable goods would be deemed to be exempted goods. Then the rigour of rule 6 would apply for reversal of CENVAT credit on raw material, consumables and services consumed .....

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