Income from sale of carbon credit certificate is required to reversal of cenvat credit under Rule 6(3)?

[Vijay Chitte]

Dear Professionals,

We are having a power plant & we are generating income from saling of excess carbon credit to the international market. We want to optn cenvat credit rule 6(3) option. (Propornationate reversal of cenvat credit on monthly basis)

My question is : Whether income from carbon credit certificates is required to be included, while, calculating total turnover under Cenvat creditrule 6(3)?

As per my view such income is neither manufacture, neither service & nor a trading activity, therefore not included in the total turnover under cenvat creditrule 6(3).

Pls. correct if i am wrong

Thanks

 

AI Summary

Should Income from Selling Carbon Credit Certificates Be Included in Total Turnover Under Cenvat Credit Rule 6(3)? A power plant operator inquires whether income from selling carbon credit certificates should be included in the total turnover calculation under Cenvat credit Rule 6(3). The operator believes this income should not be included as it is neither manufacturing, service, nor trading activity. A respondent asks for clarification on the duty-paid inputs or services used in the sale, suggesting that selling carbon credits is merely a commodity sale subject to VAT.