cenvat rule amendment for exempted goods

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vikas (Querist)
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13 January 2009 Can any body reply to my doubt - After reduction of Central Excise duty from 14% to 10% What is the status of Rule 6(3) (1) of Cenvat Credit Rules,2004?, as we are having an order in hand of exempted goods (by notification. Following points to be cleared -

Cenvat credit applicable ?
Or 1st cenvat credit taken & at time of invoicing which rate is applicable for reversal of cenvat credit ?
Or separate record maintain for Cenvat credit invoice -

Electrical Panels to be used for Water Treatment Plant -

[ previously following notification is applicable ] -

NOTIFICATION No. 3 /2004-CENTRAL EXCISE 08.01.2004

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary

In the public interest so to do, hereby exempts –

(I) All items of machinery, including instruments, apparatus and appliances, auxiliary equipment and their

Components/ parts required for setting up of water supply plants; and

(ii) Pipes needed for delivery of water from its source to the plant and from there to the storage facility,

Falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from whole of the duty of excise leviable thereon under the said First Schedule, subject to the condition that a certificate issued by the Collector/ Deputy Commissioner/ District Magistrate of the District in which the project is located, is produced to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that such goods are cleared for the intended use specified above.

Explanation.- For the purpose of this notification, water supply plant includes a plant for desalination, demineralization or purification of water or for carrying out any similar process or processes intended to make the water fit for agricultural or industrial use.

2. This notification shall come into force on the 9th day of January, 2004.

[F.No. 354/159/2002-TRU]

(G.S. Karki)

Under Secretary to the Government of India

Best regards,

Mr. Vikas -

Arbind Aggarwal

Arbind Aggarwal (Expert)
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15 January 2009 For the purpose of rule 6(3)(1), 10% credit has to be reversed.

For removal as such the credit taken originally ahs to be reversed.

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