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.
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
CAclubindia
