https://www.taxtmi.com/circulars?id=1776 The nil duty exemption requires non availment of CENVAT input credit as a precondition; taking input credit makes a manufacturer ineligible and later reversal does not restore eligibility. Where common continuous use inputs prevent practical segregation, manufacturers may initially refrain from credit and instead claim proportionate monthly input credit for dutiable clearances, supported by records and subject to audit, with penal consequences for incorrect claims. en-us Thu, 01 Feb 2007 00:00:00 +0530 Wed, 24 Sep 2008 14:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=1776 The nil duty exemption requires non availment of CENVAT input credit as a precondition; taking input credit makes a manufacturer ineligible and later reversal does not restore eligibility. Where common continuous use inputs prevent practical segregation, manufacturers may initially refrain from credit and instead claim proportionate monthly input credit for dutiable clearances, supported by records and subject to audit, with penal consequences for incorrect claims. Circulars Central Excise Thu, 01 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/circulars?id=1776