CBEC has brought out an important change in rule 3(5A) of CENVAT Credit Rules,2004 for manufacturers, vide notification no. 12/2013-CE.
Erstwhile provisions:
Even if the capital goods were cleared as such as scrap or waste, the manufacturer or service provider had to pay an amount equal to CENVAT availed after reducing the prescribed percentage.
New provisions:
Now, if a manufacturer clear the capital goods as waste and scrap, then he shall be required to pay an amount of duty leviable on transaction value. However, no change has been made for service providers.
For aforesaid notification, click the following link:
https://www.cbec.gov.in/excise/cx-act/notfns-2013/cx-nt2013/cent12-2013.htm
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