Dear Sirs,
Ours is the Tiles (Tariff 6907) manufacturing company, which using the exemption notification 5/2006 CE dated 01.03.2006, used to pay excise duty @ 4% with the condition no cenvat credit on inputs should be used. Please be noted that the rate of duty for the above tariff is 8%.
Now the rate 4% was increased to 8% amending the notification 5/2006 CE through 15/2009 dated 07.07.2009 in the current budget. But condition was not changed (no cenvat credit on inputs)
Please note the change in the rate of excise duty for the above said tariff itself is 8%. And the rate in the exemption notification is also 8%.
So I have to pay excise duty @ 8% even I operate the exemption notification. Moreover I am loosing cenvat credit on inputs.
In view of the above I would like to clarify my doubt, whether can I opt for not to use the exemption notification from the middle of the financial year by informing the same to the department.
Plseae advise me in this regard and analyse the notification how far it is correct.
Thank you.
CAclubindia
