Exempted and dutiable final products – reversal of credit – the Rule 6 conundrum

By Vijay Kumar

Obviously there is a maths graduate in the Board who thought that he could draft an impossible formula, so that nobody takes credit on inputs used for manufacture and service of both dutiable and exempted goods and services. He did draft the formula but somewhere through the steps lost track and forgot to include certain vital links. An equation that has two, three or four unknown elements, is manageable, but when you have so many unknown factors from ‘a’ to ‘p’, you are bound to miss some. Mathematics is very precise unlike Central Excise notifications and when you try to blend both, you should have total command over both and if you don’t, you end up with this kind of embarrassing confusion.

We have lost count of the number of articles we have carried on this controversial Rule 6. Even the topmost consultant in the country who wrote for us chose to write on this Rule 6.

One of our most enlightened netizens, wrote in: