Trading Export is Considered as Exempted Services

[RAM SHARMA]

Dear Experts,

We are manufacturer cum merchant exporter, we are doing manufacturing sale and trading sale in domestic market as well as export market. whether our trading export will be treated as exempted service and cenvat to be reverse under rule 6(3) of cenvat credit rule 2004.

Please advice.

Thanks

AI Summary

Trading export classification: exports not treated as exempt service, so no Cenvat reversal under Rule 6(3).
Exports of trading goods are not to be treated as an exempted service for Cenvat reversal purposes; exported goods are treated as duty-free and manufacturers need not reverse Cenvat credit under the cited reversal mechanism. A judicial authority supports that, for exported exempted products, the specific reversal liability is not attracted and credit on inputs used in exported manufacture remains available.