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AN OVERVIEW OF CENVAT CREDIT RULES, 2004

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..... person as input or capital goods or consumable for production/manufacture of his goods. When such duty paid goods are used by another manufacturer, the duty suffered on the said goods is required to be offset, as otherwise, it would result in payment of duty on the duty already paid. In order to overcome the cascading effect as a result of duty on duty, Cenvat credit scheme has been introduced .....

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