Dear Sir , We are a manufacturing company our business is 55% Manufactured goods removed with CENVAT and 45% by As such clearance with CVD and SAD passed on to the customer.
The excise department is asking to pay and amount equal to 6% on the 10% of the As such clearnce sales value and it is considered as exempted goods / Services under rule 6 (3).
Please clarify
Dear Yoganand sir, For as such clearance you have not availed Cenvat credit but you have passed on the benefit to your customers. This you might have done with little margin on goods that you have procured. Now department is considering this as trading and asking to to 6% on such exempted turnover. Here you need not to pay 6% on such turnover instead you can do one thing that, take margin amount on such sale and take common input services availed and reverse proportionately along with interest.
For more details,pl go through Rule 6(3a) provisions and various options available under Rule 6(3A) of Cenvat Credit Rules 2004.
venkat @ hiregange.com
9620116162
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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