Page 127 - ELT_15th August 2020_Vol 373_Part 4

2020 ] COMMR. OF CENTRAL EXCISE, CHANDIGARH-II v. WELSPUN CORPORATION LTD. 461

ground that the said inputs are used in the manufacture of goods cleared
without payment of duty under the provisions of that rule.
(2) Where a manufacturer or provided of output service avails of CENVAT
credit in respect of any inputs or input services and manufactures such final
products or provides such output service which are chargeable to duty or
tax as well as exempted goods or services, then, the manufacturer or pro-
vider of output service shall maintain separate accounts for -
(a) the receipt, consumption and inventory of inputs used -
(i) in or in relation to the manufacture of exempted goods;
(ii) in or in relation to the manufacture of dutiable final products
excluding exempted goods;
(iii) for the provision of exempted services;
(iv) for the provision of output services excluding exempted ser-
vices; and
(b) the receipt and use of input services -
(i) in or in relation to the manufacture of exempted goods and
their clearance upto the place of removal;
(ii) in or in relation to the manufacture of dutiable final products,
excluding exemptted goods, and their clearance upto the place
of removal;
(iii) for the provision of exempted services; and
(iv) for the provision of output services excluding exempted ser-
vices, and shall take CENVAT credit only on inputs under
sub-clause (ii) and (iv) of clause (a) and input services under
sub-clauses (ii) and (iv) of clause (b).
(3) Notwithstanding anything contained in sub-rules (1) and (2), the man-
ufacture of goods or the provider of output service, opting not to maintain
separate accounts, shall follow any of the following options, as applicable to
him, namely :-
(i) pay an amount equal to six per cent of value of the exempted
goods and exempted services; or
(ii) pay an amount as determined under sub-rule (3A); or
(iii) maintain separate accounts for the receipt, consumption and
inventory of inputs as provided for in clause (a) of sub-rule
(2), take CENVAT credit only on inputs under sub-clauses (ii)
and (iv) of said clause (a) and pay an amount as determined
under sub-rule (3A) in respect of input services. The provi-
sions of sub-clauses (i) and (ii) of clause (b) and sub-clauses (i)
and (ii) of clause (c) of sub-rule (3A) shall not apply for such
payment.
Provided that if any duty of excise is paid on the exempted goods, the
same shall be reduced from the amount payable under clause (i) :
Provided further that if any part of the value of a taxable service has
been exempted on the condition that no CENVAT credit of inputs and in-
put services, used for providing such taxable service, shall be taken then the
amount specified in clause (i) shall be six per cent of the value so
exempted :

EXCISE LAW TIMES  15th August 2020  127