Cenvat rule 6
This query is : Resolved
19 January 2012
#1. Nonpayment of an amount equal to 5% on executed clearance as required U/R 6 of cenvat Cex Rule 2006
Details Explanation from our side:-
Excise Authorities raising issue that as per the Cenvat Excise Rule 6 they told that you can reverse the 5% duty on total sales value dispatch under 6/2006 - PAC – International Comeptetive Bidding – under 91 chapter – with NIL duty.
We had taken care against the same procurement that not to take the cenvat credit, but the issue basically aroused from Cenvat service Input – by oversight we have considered two Service Invoices in Input services and credit the same, which the amount hardly not more than 10K, but apart from this they raise point towards that you have used common facility under one roof to executed both the activities like manufacturing and exempted goods and against which we have availed credit on comman input services example rent , telephone services, housekeeping services, security services and Etc, Etc.
And they ask us to paid the 5% period 2009-10 (up to 27.02.2010 new notification release for considering cenvat credit for the PAC 6/2006) –
Total sales during the period amounting Rs. 22,68,80,208/- and ask us to make the payment @5% Rs. 1,13,44,005/- + interest @18% Rs. 44,49,980/-
Pls guide how to avoid the same.
Details Explanation from our side:-
Excise Authorities raising issue that as per the Cenvat Excise Rule 6 they told that you can reverse the 5% duty on total sales value dispatch under 6/2006 - PAC – International Comeptetive Bidding – under 91 chapter – with NIL duty.
We had taken care against the same procurement that not to take the cenvat credit, but the issue basically aroused from Cenvat service Input – by oversight we have considered two Service Invoices in Input services and credit the same, which the amount hardly not more than 10K, but apart from this they raise point towards that you have used common facility under one roof to executed both the activities like manufacturing and exempted goods and against which we have availed credit on comman input services example rent , telephone services, housekeeping services, security services and Etc, Etc.
And they ask us to paid the 5% period 2009-10 (up to 27.02.2010 new notification release for considering cenvat credit for the PAC 6/2006) –
Total sales during the period amounting Rs. 22,68,80,208/- and ask us to make the payment @5% Rs. 1,13,44,005/- + interest @18% Rs. 44,49,980/-
Pls guide how to avoid the same.
20 January 2012
This is all India issue. Issue raised by CAG. Excise department is issuing SCN to all assessees who have cleared goods under this Notfn., and keeping in the call book.
No need to reverse 5%.
No need to reverse 5%.
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