Modvat/Cenvat credit entitlement: full SSI exemption precludes credit; manufacturer must reverse credit or pay duty on exempted goods. Manufacturers opting for full SSI exemption are not entitled to avail Cenvat/Modvat credit on inputs used for exempted goods; Rule 6 of the Cenvat Credit Rules does not apply to such exempted clearances. If cenvatable inputs are used in exempted production, the manufacturer must either reverse the credit on those inputs or pay duty on the finished exempted goods.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Modvat/Cenvat credit entitlement: full SSI exemption precludes credit; manufacturer must reverse credit or pay duty on exempted goods.
Manufacturers opting for full SSI exemption are not entitled to avail Cenvat/Modvat credit on inputs used for exempted goods; Rule 6 of the Cenvat Credit Rules does not apply to such exempted clearances. If cenvatable inputs are used in exempted production, the manufacturer must either reverse the credit on those inputs or pay duty on the finished exempted goods.
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