Cenvat credit restriction: inputs used exclusively for exempted goods are ineligible; payment or separate accounting applies only to common inputs. No CENVAT credit is admissible on inputs clearly and exclusively used in the manufacture of exempted finished goods. The rules allow either maintenance of separate accounts for inputs used for exempted and dutiable goods or the alternative payment mechanism, but that option applies only to common inputs used for both kinds of manufacture and does not authorize credit for inputs used exclusively for exempted products. Recovery action should be taken where credit was wrongly claimed.
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.
Cenvat credit restriction: inputs used exclusively for exempted goods are ineligible; payment or separate accounting applies only to common inputs.
No CENVAT credit is admissible on inputs clearly and exclusively used in the manufacture of exempted finished goods. The rules allow either maintenance of separate accounts for inputs used for exempted and dutiable goods or the alternative payment mechanism, but that option applies only to common inputs used for both kinds of manufacture and does not authorize credit for inputs used exclusively for exempted products. Recovery action should be taken where credit was wrongly claimed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
