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Exemption of excise duty cannot be denied on inputs used in manufacturing goods


 

In the case of M/s Hamdard (Wakf) Laboratories, the Allahabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) while accessing the exemption of excise duty on inputs used in manufacturing of goods held that the mere taking of credit on inputs used in manufacturing of goods does not deny the exemption of excise duty. It was further stated that in case an entry is made for taking credit and subsequently another entry is made for reversing such credit this is as good as not credit been taken. The CESTAT while discussing Rule 6(2) of CENVAT Credit Rules, 2004 stated that the rule only asks for having separate accounts for manufacturing of dutiable and exempted goods and it does not require an assessee to purchase, stock, and use the common inputs separately for manufacturing of dutiable and exempted goods. Sources [1] https://www.taxscan.in/exemption-of-excise-duty-cant-be-denied-for-mere-taking-credit- of-duty-paid-on-inputs-used-in-manufacture-of-goods-cestat-grants-relief-to-hamdard/ 139624/

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