cenvat credit

[narendra arora]

Dear Sirs

Incase of sales made against Excise Exemption Certificate, can we take cenvat credit of input used for final product.

Please treat this URGENT..

Narendra  

AI Summary

Cenvat credit in exempt sales: inputs for exempted final products are ineligible and reversal is required if accounts are not separated.
Inputs and input services used in manufacture of final products sold under an excise exemption certificate are ineligible for cenvat credit; if exempted and dutiable production are not maintained in separate accounts, a prescribed reversal or payment obligation must be made in respect of the exempted manufacture.