central excise notification no 30/2004 & rule 6 (3) amended vide not no 13/2016 _CE (NT) dated 10.03.2016

[Richa Goyal]

Sir,

we are a texturising unit and eligible to clear goods without payment of duty under notification No. 30/2004 provided we do not take credit of the duty paid on inputs.

Dept states that we are required to reverse 6% as per Rule 6 (3) amended vide noti no 13/2016- CE dated 01.03.2106.

Kindly guide.

AI Summary

Texturizing Unit Challenges 6% Reversal Demand Under Rule 6(3); Expert Highlights Procedural Compliance and Burden of Proof A texturizing unit sought guidance on whether they need to reverse 6% of the value of exempted goods under Rule 6(3) as amended by Notification No. 13/2016, despite not taking credit on inputs. The department issued a notice demanding this reversal. An expert responded, stating that such a demand is unsustainable and may be dropped if properly contested. Exported goods are considered duty-paid, negating the need for reversal. The expert emphasized the importance of procedural compliance and the burden of proof on the department to demonstrate any wrongdoing. The inquirer expressed gratitude for the guidance received.