Excise

You are looking for the copy of the Rule or the interpretation of the Rule??

If you are looking for the copy of the Rule, it is as follows:

3. CENVAT credit. -

(5) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9:

Provided that such payment shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service:
Amended vide Notification No. 10/2008 -Central Excise (N.T.), dated 01/03/2008)

Provided further that such payment shall not be required to be made when any capital goods are removed outside the premises of the provider of output service for providing the output service and the capital goods are brought back to the premises within 180 days, or such extended period not exceeding 180 days as may be permitted by the jurisdictional Deputy Commissioner of Central Excise, or Assistant Commissioner of Central Excise, as the case may be, of their removal.

[ Omitted vide Notification No. 10/2008 -Central Excise (N.T.), dated 01/03/2008 ]

Provided also that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit;”.

[ Inserted vide Notification No. 39/2007 -Central Excise (N.T.), dated 13/11/2007 ]

in simple wrds

jab bhi asey INPUTS, CAPITAL GOODS,(X NO INPUT SRVICES X)

jinki purchase par cenvat credit book kiya gya h

ko "AS SUCH " ya " PARTLY PROCESSING" k baad factory se remove(only under invoice)kiya jata h to

manufacturer ko utni hi amont vapis pay krni hoti h jitna vo in input, capital goods pe removal tak cenvet credit avail(book) kr chuka h. {chahe vo credit usne use na kiya ho}

main object behind this section taaki cenvat credit ka benefit vahi manufacturer avail kr sken jo input ya capital goods jinpe ccr. mila h ko purchase krne k baad use bhi krta h, agar vo inko after taking ccr sale kr deta h to usey ccr. ko bhi vapis krna chahiye. ok ji.

ccr. means cenvat credit

samajh aye to btana

na aye to bhi btana