TaxTMI 
TaxTMI 
we are a manufacturing unit. we produce both dutiable and exempted goods. Can we get cenvat credit??/if yes then what is the procedure
CENVAT CREDIT
26 Sep 2014 
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Cenvat credit requires separate accounts, proportional reversal, or payment on removal; capital goods generally retain full credit.
Manufacturers of both dutiable and exempt goods may claim Cenvat credit only by complying with Rule 6: maintain separate books of accounts, reverse proportionate credit attributable to exempted output, or make the stipulated payment on removal of exempt goods. Capital goods used commonly are generally eligible for full credit unless exclusively for exempt goods. For input services, either keep segregated records or apportion eligible credit by multiplying eligible credit by the ratio of dutiable goods value to total goods value; a payment option may be practical when exempt output is minimal. (AI Summary)
Manufacturers of both dutiable and exempt goods may claim Cenvat credit only by complying with Rule 6: maintain separate books of accounts, reverse proportionate credit attributable to exempted output, or make the stipulated payment on removal of exempt goods. Capital goods used commonly are generally eligible for full credit unless exclusively for exempt goods. For input services, either keep segregated records or apportion eligible credit by multiplying eligible credit by the ratio of dutiable goods value to total goods value; a payment option may be practical when exempt output is minimal. (AI Summary)