TaxTMI 
TaxTMI 
Dear Experts,
What is the difference between Rule 6(1) and Rule 6(3) of cenvat credit rule 2004. Which rule is best for us if we are removing excisable goods and exempted services(Trading Goods) without keeping seperate record.
Thanks
Difference between Rule 6(1) and Rule 6(3)
06 Aug 2016 
3 Replies 
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Cenvat credit apportionment: choose percentage-based discharge or formula-based calculation depending on records and credit position.
Where a taxpayer makes both dutiable and exempted supplies without separate inventory records, Rule 6(2) allows either payment of a prescribed percentage of the value of exempted goods and exempted services-capped by the opening credit balance plus credits taken during the period-or calculation of credit attributable to exempted supplies by the formula in sub rule 3A; the choice depends on which method is more beneficial and on recordkeeping requirements. (AI Summary)
Where a taxpayer makes both dutiable and exempted supplies without separate inventory records, Rule 6(2) allows either payment of a prescribed percentage of the value of exempted goods and exempted services-capped by the opening credit balance plus credits taken during the period-or calculation of credit attributable to exempted supplies by the formula in sub rule 3A; the choice depends on which method is more beneficial and on recordkeeping requirements. (AI Summary)