Rule - 6 of ccr 2004

Hello Sir,

Firstly for execising any of the option firstly intimate the department and option is for all the product and during the financial year you can not withdrwal option.

If you are not avail option under Rule - 6(3)(i) then you can exercise option under Rule - 6(3)(ii).

Under Rule - 6(3)(ii) option follow following procedure.

T = Total Input / Input Service Credit

A = Inputs / Inputs services which are exclusively used in exepmted product then this input / inputs servic credit are called ineligibal credit.

B =Inputs / Inputs services which are exclusively used in Dutiable product then this input / inputs servic credit are called eligibal credit.

T = C - (A+B)

Now ,

D = E / F * C

Where ,  E = Total Value of Exempted Goods and service  during preceeding Financial year

             F = Total value of Exemped Goods and   service , Non Exempted Goods and Service , Taxable Service and Dutiable Goods during preceeding Financial year.

Every month use above formula and revesed the amount of cenvat credit in 5th of Next month otherwise pay 15% Interest per annum.

At the end of the Financial year calculate through actual sales and compare with provisionally revesed cenvat.     

D = E / F * C

Where ,  E = Total Value of Exempted Goods and service  during  Financial year

             F = Total value of Exemped Goods and   service , Non Exempted Goods and Service , Taxable Service and Dutiable Goods during  Financial year.

and if Actual Revesal of Cenvat amount is Short then short amount revesed up to 30th June of financial year. and if excess then take cenvat credit.                                                  

 Regards

CA Parth Shah