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TMI BlogExempted Goods / Services - Reversal of Cenvat CreditX X X X Extracts X X X X X X X X Extracts X X X X ..... exclusively in dutiable goods / taxable services shall be allowed. Credit on input or input services which are utilized exclusively in exempted goods / exempted services shall not be allowed. Credit on input or input services which are utilized in both exempted and non -exempted goods or services shall not be allowed. However Cenvat Credit on these shall be allowed with in the provisions of rule 6(2) i.e. by maintaining separate books of accounts. However, Cenvat credit on input shall be allowed to a job worker referred to in rule 12AA (in case of jewellelry other article of precious metal) shall be allowed even if manufactured goods cleared without payment of duty. Here exempted goods or final product includes non -e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as determined under sub-rule (3A). Clause (iii) Option to maintain separate accounts for the receipt, consumption and inventory of inputs as provided for in clause (a) of sub-rule (2), take CENVAT credit only on inputs under sub clauses (ii) and (iv) of said clause (a) and pay an amount as determined under sub-rule (3A) in respect of input services. The provisions of sub-clauses (i) and (ii) of clause (b) and sub clauses (i) and (ii) of clause (c) of sub-rule (3A) shall not apply for such payment. Important points: Any assessee who wants to opt, any of the above clauses, need to be opt for all exempted goods or all exempted services. Once assessee chooses any option, it will be continue for the rest of the year. Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule Particulars Marked in rule 1) Rule 6(3A)(c)(i) Inputs used for exempted final products on the basis of total quantity H 2) Rule 6(3A)(c)(ii) Inputs used for exempted services J/K* L 3) Rule 6(3A)(c)(iii) Input services used for exempted final products and exempted services M/N*P Total 1)+2)+3)= Final amount need to be reversed At the year end, as shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ope of Rule 6(6) 6(6A) Rule 6(6) have an overriding effect to rule 6(1) , 6(2) , 6(3) and 6(4) and applicable to manufacturer only.. Rule 6(6A) states that the provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the taxable services are provided, without payment of service tax, to a Unit in a Special Economic Zone or to a Developer of a Special Economic Zone for their authorised operation Scope of Rule 6(7) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the taxable services are provided, without payment of service tax, to a unit in a Special Economic Zone or to a developer of a Special Economic Zone for their authorised operations or when a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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