As per rule 6, the manufacturer of dutaible & exempted goods shall maintain the seperate records for inventory & take the CENVAT credit involved in the input used in the manufacture of dutiable goods.
If he does nto maintain the seperate accounts, then plz suggest what will be the cenvat treatment considering the following example
Example :- Co. ABC is producing Goods A(Dutiable) & Goods B(Exempted). The turnover is 60 for Goods A & 40 for Goods B.
Some of the assessees has the practice of not maintaining separate accounts and instead are reversing credits on materials used for exempted activity on the basis of the Bill of Material and requisition reports after full credits had been availed initially at the time of receipt.
Where this was found to be too tedious, then the assessees had no option but to follow the prescription laid down by Rule 6 and that was, payment of 10% { now I think it is 5% plz confirm } of the value of exempted goods. In your Case 40 * 5% = 2
01 August 2012
The rate of reversal under rule 6 (3) is now 6% with effect from 01.04.2012.
6. In rule 6 of the said rules,- (a) in sub-rule (3),- (i) in clause (i), for the words ―five per cent.‖, the words ―six per cent.‖ shall be substituted; (ii) in the second proviso, for the words ―five per cent.‖, the words ―six per cent.‖ shall be substituted;
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