Exemption in excise duty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2012 Dear Sir,

We are manufacturing Lacquered Metalised Polyester film (chapter No 39219092),some times we convert this FG to our another product Badla/Jari/Kasab (Chapter No.56050020)this product is exempted from the excise duty.We removes this material from the premises without payment of duty.
Please advise whether any duties liabilities arise in future or what?

Thanks
Sohil

Arun Kumar Singh

Arun Kumar Singh (Expert)
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23 October 2012 You are manufacturing two type of goods one products is dutiable and another is exempted. You should maintain separate accounts for both goods. You will take cenvat credit on the part of duty paid on final products. Cenvat credit is not available for manufacturing of exempted goods.