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 (Seventh Amendment) Rules, 2005.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the CENVAT Credit Rules, 2004, (hereinafter referred to as the said rules), in rule 3,-
(A) after sub-rule (5), the following sub-rule shall be inserted, namely:-
“(5A) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.”.
(B) in sub-rule (6), for the words, brackets and figure, “sub-rule (5)” at both the paces where they occur, the words, brackets and figures, “sub-rule (5) and sub-rule (5A)” shall be substituted.
3. In rule 4 of the said rules,-
(A) in clause (a) of sub-rule (5), after the words “re-conditioning”, the words “,or for the manufacture of intermediate goods necessary for the manufacture of final products” shall be inserted.
(B) in sub-rule (6), for the words “Commissioner of Central Excise”, the words “Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be,” shall be substituted.
4. In rule 6 of the said rules, -
(A) in sub-rule (2), the words “except inputs intended to be used as fuel,” shall be omitted.
(B) in sub-rule (3), after Explanation II., the following Explanation shall be inserted, namely:-
“Explanation III.- For the removal of doubts, it is hereby clarified that the credit shall not be allowed on inputs and inputs services used exclusively for the manufacture of exempted goods or exempted services.”.
Neerav Kumar Mallick
Note.- The principal rules were notified vide notification No. 23/2004-Central Excise (N.T.), dated the 10th September, 2004 and published in the Gazette of India Extraordinary, Part-II, Section 3, sub-section (i) vide number G.S.R. 600(E), dated the 10th September, 2004 and last amended by notification No. 22/2005-Central Excise (N.T.), dated the 13th May, 2005 and published vide number G.S.R. 298(E), dated the 13th May, 2005.
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