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

Reversal under Cenvat rules not required for exempt exports where no input credit taken; SCN vulnerable.
Reversal under Rule 6(3) applies to exempted supplies only when Cenvat credit has been availed; where no input credit was taken for goods cleared under Notification No.30/2004, reversal does not arise. Notification No.13/2016 is not retrospective. The department's show cause notice demanding reversal for the relevant period is vulnerable to challenge, exports may be treated as duty-paid removing reversal, and option-related obligations arise only if a prior option is being changed; procedural lapses attract limited penalties.