Differentiate between dutiable and non dutiable products.

[Vijay Chitte]

As per your comments ID no:87 We can utilised a credit of Insurance policy of our plant. We are manufacturer of dutiable and non dutiable products, But my query is, How can we bifurcat that how much services utilised for dutiable and non dutibale products?

[Surender Gupta]

In case of difficulty you may either not to take the cenvat credit on input services which is being utilized in exempted and excisable goods both or alternatively you may reverse the cenvat credit to the extent of 10% of the value of exempted (non dutiable goods.

AI Summary

Input service credit allocation requires either exclusion of credit or proportionate reversal when services serve both dutiable and exempt products. Allocation of cenvat credit for input services used in manufacturing both dutiable and non dutiable products can be managed by either not availing credit on services common to both outputs or by reversing cenvat credit through a prescribed percentage of the value of exempted (non dutiable) goods to neutralize the portion attributable to exempt output.