Charging duty on exempted Goods

[MEHUL ASHAR]

Respected Sir,

As regarding above subject, My query is that do we have to charge 6% duty on the sale of exempted goods deriving CETSH NO. 25051011 on the basis of taking credit on the pet-coke which we receive according to the rule 6 of CCR 2004.Please reply.

AI Summary

6% Duty Applies on Pet-Coke Used in Manufacturing Exempt Goods Under Rule 6 of CCR 2004 A query was raised regarding the applicability of a 6% duty on the sale of exempted goods under CETSH No. 25051011, specifically concerning the use of pet-coke and the application of rule 6 of CCR 2004. Respondents clarified that if the final product is exempt, Cenvat credit is not eligible. Silica sand, classified under sub-heading No. 2505 10 11, is absolutely exempt from duty. If pet-coke, on which duty is paid, is used in manufacturing such exempt goods, a 6% reversal is required, and credit on pet-coke cannot be claimed.