Proportionate credit

[Apurba Biswas]

We are manufacturing excisable goods as well as exempted goods i.e. writing & printing paper and Newsprint respectively .For the purpose of CENVAT credit we have adopted the method of maintaning seperate inventory records for inputs and service which are used for both dutiable and exempted products.We need your guidance for the following Though we maintain seperate inventory records for input material as it is convenient and easy , Can we follow Rule 6 provision of propotionate credit for common services which will differ with input material.Please guide

AI Summary

Manufacturer Seeks Guidance on CENVAT Credit for Common Services Under Rule 6(3A) for Excisable and Exempted Goods A query was raised regarding CENVAT credit for a manufacturer producing both excisable and exempted goods, specifically writing and printing paper and newsprint. The manufacturer maintains separate inventory records for inputs used in both product types but seeks guidance on applying Rule 6 for proportionate credit on common services. The response suggests that while separate records for inputs are permissible, the nature of input services may require using Rule 6(3A) to proportionate the input service tax credit, allowing the manufacturer to avail credit accordingly.