Case Law Analysis
|Custom, Excise & Service Tax Tribunal
CENVAT Credit Rules | Non-Availment of Input Credit on Non-Excisable Goods Exempts Rule 6(3) Payment : CESTAT
CESTAT ruled that manufacturers who do not avail CENVAT credit on inputs used for non-excisable goods are not liable to pay 5-6% of their value under Rule 6(3) of the CENVAT Credit Rules. The decision clarifies that non-excisable goods do not qualify as 'exempted goods' unless explicitly defined, offering relief to manufacturers dealing with by-products.