Availment to credit on inputs used exclusively for the manufacture of exempted finished goods

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....chapter-28 and 29 used exclusively for the manufacture of exempted goods by certain assesses manufacturing finished goods falling under chapter-30 of Schedule to Central Excise Tariff Act, 1985. It has been reported that these assesses are subsequently reversing an amount @ 8% of the price of the exempted goods under clause (b) of sub-rule (3) of rule 6 of CENVAT Credit Rules, 2002. 2. The matte....

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....8% of the total price of the exempted goods excluding Sales tax and other taxes as paid. Thus, it is clear that the option to maintain the separate accounts or payment of 8% of the price of the exempted goods can be exercised only in respect of common inputs used for the manufacture of dutiable and exempted goods. Where any inputs are clearly identifiable as used only in or in relation to the manu....