Cenvat credit reversal obligation clarified: payment option capped by total credit taken, not total credit available.
Amendment to Rule 6(3) requires manufacturers and output service providers supplying both exempted and non exempted items to elect a payment option for exempted supplies, binding for the financial year. One option mandates payment calculated on the value of exempted supplies subject to a cap expressly intended to be the total credit taken by the assessee; alternatives include computation under sub rule mechanisms and reductions where excise duty has been paid or exemption conditions bar taking credit. Definitions and prohibitions clarify scope of exempted supplies and inputs. (AI Summary)