rule 6, sub-rule (3) clause (ii)

[mukesh pareek]

Dear Experts,

A Manufacturer of dutiable and exempted products maintaining separate accounts for input material and taking Cenvat credit accordingly but he can''t maintain separate account for input service.

Manufacturer want's to follow rule 6, sub-rule (3) clause (ii) so can anyone explain this simply ( Do not copy as mention in manual because i can't understand)

Someone said me that if your last year ration is 85 : 15 ( 85 exempted sale and 15 Dutiable sale ) then you can take partial 15% credit of total input service for whole next year.

please advise

AI Summary

Cenvat credit apportionment: apply the Rule 6(3A) mechanism with required CA certification; sales ratio shortcuts not permitted.
Apportionment of input service credit for manufacturers of dutiable and exempted goods must follow Rule 6 read with sub rule (3A); a chartered accountant's certificate under Rule 6(3)(ii) may be used to support reversal calculations but is subject to departmental verification. Simple application of a prior year sales ratio to claim proportional service credit is not legally sanctioned and may be disallowed; provisional reversals based on past sales must be reconciled and adjusted as required by the rules.