if rate of duty is nil than cenvat credit reversal ???

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This query is : Resolved

RAM SAINI (Querist)

20 March 2010 we are the manufacturar exporter of medical items
we are exporting iv cannulas(90183930) @4.12% excise duty
under notification 10/2006 amended by 58/2008

we are despatching plastic waste & scrap(391500)
@ nil rate of duty under notification 10/2006

my query is that have we to reserve the cenvat credit taken on scrap portion which was cleared @ nil rate of duty

is there any difference between exempted goods or nil rate of duty goods

if plastic waste & scrap(391500) is having the full rate of excise duty @ 10 % as per the central excise tariff (porduct is not exempted as per the tariff)

if we availed the 10/2006 notification rate of duty is nil

in that case have we to reverse the cenvat credit already taken on the scrap portion.

or there is no need of reversal as product is not exempted it is having the nil rate of duy under said notification.

please advise

Thanks & rgds

RK Saini

we are despatching our scrap

Anil

Anil (Expert)

31 March 2010 There is diff in exempt goods and nil rate goods .... If rate is nil they u cana vil cenvat however if it is exempt then u can not avail cenvat ... if cenvat is availed then it need to be reversed

RAM SAINI

RAM SAINI (Querist)

06 April 2010 sir

where can i find this difference in excise mannual

exempted goods definition

nil rate of duty definiton

kindly advice

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