Eligibility of Notification No.067/95 or Exemption of Intermidiate Goods Used for Supply of Goods under Notification No.12/2012 Against ICB

[Chetan Pawar]

Dear All,

We are supplying of Goods which was exempted under against ICB . For this supply is their any duty liabilities comes for intermediate goods used for the Exempted Goods or are we eligible for exemption under notification no.067/1995.

Thanks & Regards,

Chetan Pawar

AI Summary

Exemption eligibility: intermediate goods for ICB supplies may qualify if CENVAT Rule 6 compliance is satisfied.
The proviso to Notification No. 67/1995 excludes inputs used in manufacture of wholly exempt final products, which would prima facie make intermediate goods chargeable to duty; however, where a manufacturer clears both dutiable and exempt products and complies with Rule 6 of the CENVAT Credit Rules, and where Rule 6(6)(vii) applies to supplies against ICB projects, the manufacturer may take CENVAT credit on inputs and intermediate goods and claim exemption under the notification for intermediate goods used in exempt final goods supplied to ICB projects.