Cenvat credit admissibility clarified: donated goods require segregation of input records; reversing standard percentage not available for donations. Clarification: under Notification No. 2/2001, manufacturers may not take CENVAT credit for inputs used in the manufacture of exempt final products. For sales to relief agencies funded by cash donations, a manufacturer must either maintain separate accounts for inputs used in dutiable and exempt goods and claim credit only for dutiable usage, or, absent separate accounts, pay either the input-attributable CENVAT amount for specified goods or eight per cent of the total price for other exempted goods at clearance. For direct donations (no sale), the manufacturer cannot reverse the standard percentage and must maintain separate records and not claim credit for inputs used in exempt goods.