Rule 6 - Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services

Cenvat credit restriction: inputs used for exempted outputs must be attributed and ineligible credit paid, with reconciliation and reporting.

Cenvat credit is disallowed for inputs and input services used for manufacture or clearance of exempted goods or provision of exempted services; manufacturers or providers must either pay a presumptive amount based on exempted output value, follow a prescribed attribution procedure to segregate exclusive and common credits and pay the ineligible portion, or maintain separate accounts in specified cases. Provisional monthly payments, annual reconciliation, interest on shortfalls, exclusions for specified supplies, reporting to the Superintendent and statutory recovery mechanisms are mandated.