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

Cenvat credit reversal required where inputs are used solely to manufacture exempted goods, mandating repayment in lieu of credit.
If the final product is unconditionally exempt, credit of duty paid on inputs used in its manufacture is not allowable; where such inputs are used to produce exempt goods the manufacturer must reverse the benefit by paying the amount provided under the credit reversal mechanism, and if inputs are used exclusively for exempt manufacture the entire credit is ineligible and must be repaid.