Dear Sir,
We are manufacturer of exempted goods. We export more then 90% of exempted goods. As per cenvat credit rule there is no cenvat credit on inputs & input services for manufacturing of exempted final finished goods.
If a manufacturer manufacture excisable goods & export it without payment of duty , then we availed cenvat on inputs, and the same exporter export it's exempted goods then it will be export with input duty burden ?
Clarification on Cenvat Credit: Rule 6 requires separate inventories for dutiable/exempted goods or pay percentage on exempted value. A manufacturer of exempted goods raised a query about Cenvat credit eligibility on inputs for exported exempted goods. Responses clarified that under Rule 6 of the Cenvat Credit Rules, manufacturers must maintain separate inventories for inputs used in dutiable and exempted goods or pay a percentage of the value of exempted goods if separate inventories are not maintained. Exports under bond for exempted goods are not permitted following amendments to relevant notifications. However, a rebate for duty paid on inputs used in exported goods can be claimed under certain conditions, but not for exempted goods. The discussion highlighted complexities in applying these rules to export scenarios. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
