Amends CENVAT Credit Rules, 2004 (Second Amendment)

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Amends CENVAT Credit Rules, 2004 (Second Amendment)

NOTIFICATION NO 22/2009- CX.,(N.T.)

Dated: September 7, 2009

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1)These rules may be called the CENVAT Credit (Second Amendment) Rules, 2009.

(2)They shall come into force on the date of their publication in the Official Gazette.

2.In the CENVAT Credit Rules, 2004, in rule 3, in sub-rule (7), in clause (a), after the proviso, the following proviso shall be inserted, namely:-

“Provided further that the CENVAT credit in respect of inputs and capital goods cleared on or after the 7 th September, 2009 from an export-oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such undertaking or unit has paid –

(A) excise duty leviable under section 3 of the Excise Act read with serial number 2 of the notification no. 23/2003-Central Excise, dated 31st March, 2003 [G.S.R. 266(E), dated the 31st March, 2003]; and

(B) the Education Cess leviable under section 91 read with section 93 of the Finance (No. 2) Act, 2004 and the Secondary and Higher Education Cess leviable under section 136 read with section 138 of the Finance Act, 2007, on the excise duty referred to in (A), shall be the aggregate of –

(I) that portion of excise duty referred to in (A), as is equivalent to -

(i) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, which is equal to the duty of excise under clause (a) of sub-section (1) of section 3 of the Excise Act;

(ii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act; and

(II) the Education Cess and the Secondary and Higher Education Cess referred to in (B)”.

[F.No.354/158/2008-TRU]

(Prashant Kumar)

Under Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No.23/2004-Central Excise(N.T.), dated the 10 th September, 2004 [G.S.R.600(E), the 10 th September, 2004] and were last amended by notification No.16/2009-Central Excise(N.T.), dated the 7 th July, 2009, that was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) [G.S.R.481(E)].

Replies (4)

Anand Launchpad

57 Points Joined September 2009

Hi Jyoti,

Can u advise me how we take set off for Cenvat credit. means which duties will get set off against each other.

Many Thanks

Anand

Guest

Anand, Rule 3(4) of cenvat credit rules 2004

(4) The CENVAT credit may be utilized for payment of –

(a) any duty of excise on any final product; or

(b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or

(d) an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or

(e) service tax on any output service:

Provided that while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month or quarter, as the case may be, for payment of duty or tax relating to that month or the quarter, as the case may be:

Provided further that the CENVAT credit of the duty, or service tax, paid on the inputs, or input services, used in the manufacture of final products cleared after availing of the exemption under the following notifications of Government of India in the Ministry of Finance (Department of Revenue),-

(i) No. 32/99-Central Excise, dated the 8^th July, 1999 [G.S.R. 508(E), dated 8^th July, 1999];

(ii) No. 33/99-Central Excise, dated the 8^th July, 1999 [G.S.R. 509(E), dated 8^th July, 1999];

(iii) No. 39/2001-Central Excise, dated the 31^st July, 2001 [G.S.R. 565 (E), dated the 31^st July, 2001];

(iv) No. 56/2002-Central Excise, dated the 14^th November, 2002 [G.S.R. 764(E), dated the 14^th November, 2002];

(v) No. 57/2002-Central Excise, dated 14^th November, 2002 [G.S.R. 765(E), dated the 14^th November, 2002];

(vi) No. 56/2003-Central Excise, dated the 25^th June, 2003 [G.S.R. 513 (E), dated the 25^th June, 2003]; and

(vii) No. 71/2003-Central Excise, dated the 9^th September, 2003 [G.S.R. 717 (E), dated the 9^th September, 2003],

shall, respectively, be utilized only for payment of duty on final products, in respect of which exemption under the said respective notifications is availed of.

Provided also that no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, as amended by Section 85 of Finance Act, 2005 (18 of 2005) shall be utilised for payment of service tax on any output service.

Provided also that the CENVAT credit of any duty mentioned in sub-rule (1), other than credit of additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005) , shall not be utilised for payment of said additional duty of excise on final products:”

Anand Launchpad

57 Points Joined September 2009

Originally posted by :Mohan Dagha

Anand, Rule 3(4) of cenvat credit rules 2004
(4)    The CENVAT credit may be utilized for payment of –
(a)    any duty of excise on any final product; or
(b)   an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or
(c)    an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or
(d)    an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or
(e)    service tax on any output service:

Provided that while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month or quarter, as the case may be, for payment of duty or tax relating to that month or the quarter, as the case may be:

Provided further that the CENVAT credit of the duty, or service tax, paid on the inputs, or input services, used in the manufacture of final products cleared after availing of the exemption under the following notifications of Government of India in the Ministry of Finance (Department of Revenue),-
(i)                  No. 32/99-Central Excise, dated the 8th July, 1999 [G.S.R. 508(E), dated 8th July, 1999];
(ii)                No. 33/99-Central Excise, dated the 8th July, 1999 [G.S.R. 509(E), dated 8th July, 1999];
(iii)               No. 39/2001-Central Excise, dated the 31st July, 2001 [G.S.R. 565 (E), dated the 31st July, 2001];
(iv)             No. 56/2002-Central Excise, dated the 14th November, 2002 [G.S.R. 764(E), dated the 14th November, 2002];
(v)                No. 57/2002-Central Excise, dated 14th November, 2002 [G.S.R. 765(E), dated the 14th November, 2002];
(vi)              No. 56/2003-Central Excise, dated the 25th June, 2003 [G.S.R. 513 (E), dated the 25th June, 2003]; and
(vii)             No. 71/2003-Central Excise, dated the 9th September, 2003 [G.S.R. 717 (E), dated the 9th September, 2003],

shall, respectively, be utilized only for payment of duty on final products, in respect of which exemption under the said respective notifications is availed of.

Provided also that no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, as amended by Section 85 of Finance Act, 2005 (18 of 2005) shall be utilised for payment of service tax on any output service.

Provided also that the CENVAT credit of any duty mentioned in sub-rule (1), other than credit of additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005) , shall not be utilised for payment of said additional duty of excise on final products:”

Thanks Mohan,

As per 4(a) above any duty can be utilized for payment of excise Does that mean I can utilize credit on account of NCCD against payment of BED. and LIKE WISE EC and SHEC credit for NCCD or BED ?

Please advise

Thanks

Anand

Anand Launchpad

57 Points Joined September 2009

Thanks Mohan,

As per 4(a) above any duty can be utilized for payment of excise Does that mean I can utilize credit on account of NCCD against payment of BED. and LIKE WISE EC and SHEC credit for NCCD or BED ?

Please advise