TMI Blog'Beware' textile manufacturers/ processors - availment of Notification No. 30/2004-CE & 29/2004-CEX X X X Extracts X X X X X X X X Extracts X X X X ..... 'Beware' textile manufacturers/ processors - availment of Notification No. 30/2004-CE & 29/2004-CE - Commentaries / Editorials Dated:- 12-2-2007 - News - Under Rule 6 of the Cenvat Credit Rules, 2004 the assessee who is engaged in manufacturing of Excisable (On which appropriate duty is required to be paid) and Exempted Goods simultaneously, has an option either to avail the Cenvat Credit on inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts used in Excisable Goods on proportionate basis or avail the Cenvat Credit and subsequently revers the Cenvat Credit equal to 10% on the Price of Exempted Finished Goods. Various courts and Tribunal has accepted the above position and allowed Cenvat Credit with respect to exempted goods subject to reversal of 10% (earlier 8%) at the time of removal of exempted goods. Now, the Board has iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued a circular contrary to this well settled situation in respect of the manufactures availing exemption under notification no. 29/2004-CE and 30/2004-CE . The Board has pointed out the following condition of the notification no. 30/2004 in its circular no. Circular No. 845/03/2006-CX dated 1-2-2007 : - 'nothing contained in this Notification shall apply to the goods in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the credit of duty on inputs has been taken under the provisions of the CENVAT Credit Rules, 2004' It is strange to note that the rule 6 of the Cenvat Credit Rules, 2004 recognize the difficulty of availing Cenvat Credit on the common inputs used in both exempted and dutiable goods, but the Board does not. If the textile manufacturer, wants to avail the Cenvat Credit on common input, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly one option has to be exercised - "Avail Cenvat Credit proportionately on common inputs" - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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