CENVAT CREDIT

[ranjit kunar]

we are a manufacturing unit. we produce both dutiable and exempted goods. Can we get cenvat credit??/if yes then what is the procedure

AI Summary

Manufacturers Seek Guidance on CENVAT Credit for Mixed Goods; Rule 6 Options Include Separate Accounts or Credit Reversal. A manufacturing unit inquired about availing CENVAT credit while producing both dutiable and exempted goods. The first response advised checking Rule 6 of the CENVAT Credit Rules, 2004, suggesting options like maintaining separate accounts, reversing proportionate credit, or paying 6% on exempted goods' value. The second response emphasized maintaining separate accounts for input services and capital goods, allowing full credit for capital goods not exclusively used for exempted goods. It also suggested proportionate credit calculation or reversing 6% credit if exempted goods' quantity is minimal.