Payment of Duty - manufacturer

[pravinchandra salian]

The Rate of Excise Duty has been reduced from 10% to 8% wef 24.02.09. In case of a manufacturer manufacturing dutiable and exempted goods and not maintain separate accounts of cenvat credit availed, the manufacturer shall pay an amount equal to 10% of the value of exempted goods in terms of Rule 6(3) of  CCR, 2004. In the issue under consideration inspite of reversing 10% whether the manufacturer can pay duty @8% on the value of exempted goods. The goods are exempted by virtue of Notification and not by tariff itself.

AI Summary

Manufacturer Queries Excise Duty Payment on Exempted Goods: Rule 6(3) CCR, 2004 Clarification A discussion on a forum addresses a query about the payment of excise duty by a manufacturer producing both dutiable and exempted goods without maintaining separate Cenvat credit accounts. The excise duty rate was reduced from 10% to 8% as of February 24, 2009. The question is whether the manufacturer can pay 8% on exempted goods instead of reversing 10% as per Rule 6(3) of CCR, 2004. One response clarifies that exemption notifications are optional, allowing the manufacturer to pay the appropriate duty rate without applying Rule 6 provisions.