TaxTMI 
TaxTMI 
Charging duty on exempted Goods
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....harging duty on exempted Goods<br> Query (Issue) Started By: - MEHUL ASHAR Dated:- 12-7-2016 Last Reply Date:- 17-7-2016 Central Excise<br>Got 5 Replies<br>Central Excise<br>Respected Sir, As regarding above subject, My query is that do we have to charge 6% duty on the sale of exempted goods deriving CETSH NO. 25051011 on the basis of taking credit on the pet-coke which we receive according to th....
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....e rule 6 of CCR 2004.Please reply. Reply By Ganeshan Kalyani: The Reply: Sir, I your final product is exempted the Cenvat credit is not eligible. Thanks. Reply By KASTURI SETHI: The Reply: I endorse the views of Sh.Ganeshan Kalyani, Sir. This 6% is amount of reversal and credit cannot be taken. Reply By Rajagopalan Ranganathan: The Reply: Sir, Silica sand (Processed) which fall under sub-he....
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....ading No. 2505 10 11 attracts 'Nil' rate of duty under First Schedule of Central Excise Tariff Act, 1985. That is, the said product is unconditionally and absolutely exempted from duty. Therefore if you use pet coke on which duty is paid and the said duty is availed as credit, then if such coke is used in the manufacture of Silica sand (Processed) then you have to pay back 6% of the price ....
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....of Silica sand (Processed) under rule 6 of CCR, 2004. If you use the pet coke only in the manufacture of Silica sand (processed) then you are not eligible to take credit of duty paid on such pet coke since the same is used in the manufacture of absolutely exempted excisable goods. Reply By Ganeshan Kalyani: The Reply: Sir, querist has to respond as to what is his final product - exempt or dutiab....
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....le. Thanks. Reply By MEHUL ASHAR: The Reply: Respected Sirs, Thank u 4 ur replies.<br> Discussion Forum - Knowledge Sharing ....