Cenvat credit on exempted product cleared in domestic market

[pardeep bisht]

we are manufacturer of exciseable product as well as exempted product . Our exempted product maximum cleared for export,a very low quantity we cleared in domestic market,on the clearance in DTA we pay 5% amount as per rule 6(3)i . and avail the Cenvat credit for all the Inputs and services. Please clear we are doing write thing

AI Summary

Reversal of cenvat credit required for exempted goods sold domestically; export sales under bond avoid reversal, refund available.
Clearance of exempted excisable goods to the domestic market requires proportionate reversal of Cenvat credit or payment for the DTA sale. Exports under bond are not treated as exempted clearances and do not attract reversal; accumulated credit unutilized due to export may be claimed as a refund under the applicable refund provision.