CENVAT CREDIT RULES, 2002
(1) These rules may be called the CENVAT Credit Rules, 2002
(2) They extend to the whole of India.
(3) They shall come into force on the 1st day of March, 2002.
In these rules, unless the context otherwise requires, -
(a) "Act" means the Central Excise Act, 1944 (1 of 1944);
(b) "capital goods" means, -
(i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Tariff Act;
(ii) pollution control equipment
(iii) components, spares and accessories of the goods specified at (i) and (ii) above;
(iv) moulds and dies;
(v) refractories and refractory materials;
(vi) tubes and pipes and fittings thereof; and
(1) A manufacturer or producer of final products shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of -
(i) the duty of excise specified in the First Schedule to the Tariff Act, leviable under the Act;
(ii) the duty of excise specified in the Second Schedule to the Tariff Act, leviable under the Act;
(iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 (40 of 1978);
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
48[(v) the National Calamity Contingent duty leviable under section 136 of the Fina
Conditions for allowing CENVAT credit.--
(1) The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer:
16[Provided that in respect of the final products, namely,20[yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, readymade garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act], the CENVAT credit of duty paid on inputs may be taken immediately on receipt of such inputs in the registered premises of the person who gets such final products manufactured on his account on job work subject to condition that the inputs are used in the manufacture of such final product by the job worker.]
(2) (a) The CENVAT credit in respect of capital go
Where any inputs are used in the final products which are cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate products cleared for export, the CENVAT credit in respect of the inputs so used shall be allowed to be utilized by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible, the manufacturer shall be allowed refund of such amount subject to such safeguards, conditions and limitations as may be specified by the Central Government by notification :
Provided that no refund of credit shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims a rebate of duty under the Central Excise Rules, 2002, in respect of such d
(1) The CENVAT credit shall not be allowed on such quantity of inputs, which is used in the manufacture of exempted goods, except in the circumstances mentioned in sub-rule (2).
17[Provided the CENVAT credit on inputs shall not be denied to job worker referred to in rule 12 B of the Central Excise Rules, 2002 on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule.]
(2) Where a manufacturer avails of CENVAT credit in respect of any inputs, except inputs intended to be used as fuel, and manufactures such final products which are chargeable to duty as well as exempted goods, then, the manufacturer shall maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and the quantity of
The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the factory of a manufacturer of the final products may, in exceptional circumstances having regard to the nature of the goods and shortage of storage space at the premises of such manufacturer, by an order, permit such manufacturer to store the inputs in respect of which CENVAT credit has been taken, outside such factory, subject to such limitations and conditions as he may specify :
Provided that where such inputs are not used in the manner prescribed in these rules for any reason whatsoever, the manufacturer of the final products shall pay an amount equal to the credit availed in respect of such inputs.]
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2. Inserted by M.F. & C.A. (D.R.) Notification No. 13/2003-C.E. (N.T.), rela
(1) The CENVAT credit shall be taken by the manufacturer on the basis of any of the following documents, namely :-
(a) an invoice issued by -
(i) a manufacturer for clearance of -
(I) inputs or capital goods from his factory or from his depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer;
(II) inputs or capital goods as such;
(ii) an importer;
(iii) an importer from his depot or from the premises of the consignment agent of the said importer if the said depot or the premises, as the case may be, is registered in terms of the provisions of
(1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory.
(2) The transfer of the CENVAT credit under sub-rule (1) shall be allowed only if the sk of inputs as such or in process, or the capital goods is also transferred alongwith the factory to the new site or ownership and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the 4[Assistant Commissioner of Central Excise or the Deputy Commissioner of Cen
51. Omitted vide Notification No. 12/2004 NT dated 09.07.2004 relating to CENVAT Credit (Amendment ) Rules, 2004. Text prior to omission read as under:
338A. Transfer of credit by exempted textile manufacturer,- (1) An independent weaver of fabrics, not subjected to any process, falling under Chapters 51, 52, 54, 55, 58 or 60 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter in this rule referred to as the First Schedule to the Central Excise Tariff Act) and which are exempted from the whole of the duty of excise leviable thereon under the said First Schedule to the Central Excise Tariff Act and the First Schedule to the Additional Duties of Excise(Goods of Special Importance) Act, 1957 (58 of 1957), shall observe the following procedure for the purposes of transfer of the credit of duty paid on the inputs, falling under Chapter 51,
(1) Any amount of credit earned by a manufacturer under the CENVAT Credit Rules, 2001, as they existed prior to the 1st day of March, 2002 and remaining unutilised on that day shall be allowable as CENVAT credit to such manufacturer under these rules, and be allowed to be utilised in accordance with these rules.
52[Provided that the credit of additional duty of customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975) shall not be allowed if the invoice or the supplementary invoice, as the case may be, bears an indication to the effect that no credit of the said additional duty shall be admissible;]
(3) A manufacturer who opts for exemption from the whole of the duty of excise leviable on goods manufactured by him under a notification based on the value or quantity of clearances in a financial year,
Notwithstanding anything contained in these rules, where a manufacturer has cleared any inputs or capital goods, in terms of notifications of the Government of India in the Ministry of Finance (Department of Revenue) No. 32/99- Central Excise, dated the 8th July, 1999 [G.S.R. 508(E), dated the 8th July, 1999] or No. 33/99- Central Excise, dated the 8th July, 1999 [G.S.R. 509(E), dated the 8th July, 1999] or No. 39/2001-Central Excise, dated the 31st July, 2001 [G.S.R. 565(E), dated the 31st July, 2001] or notification of the Government of India in the erstwhile Ministry of Finance and Company Affairs No.56/2002-Central Excise, dated the 14th November, 2002 [G.S.R. 764(E), dated 14th November, 2002]or notification No.57/2002-Central Excise, dated the 14th November, 2002 [ GSR 765(E), dated the 14th November, 2002] or notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 56/2003-Central
Notwithstanding anything contained in rule 3, the Central Government may, by notification declare the inputs on which the duties of excise, or additional duty of customs paid, shall be deemed to have been paid at such rate or equivalent to such amount as may be specified in the said notification and allow CENVAT credit of such duty deemed to have been paid in such manner and subject to such conditions as may be specified in the said notification even if the declared inputs are not used directly by the manufacturer of final products declared in the said notification, but are contained in the said final products.
13[Recovery of CENVAT credit wrongly taken or erroneously refunded. Where the CENVAT credit has been taken or utilised wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer and the provisions of sections 11A and 11AB of the Act shall apply mutatis mutandis for effecting such recoveries.]
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13. Substituted by CENVAT Credit (Third Amendment) Rules, 2003 w.e.f 1.04.2003. Text prior to amendment read as under:
Where the CENVAT credit has been taken or utilized wrongly, the same along with interest shall be recovered from the manufacturer and the provisions of sections 11A and 11AB of the Act shall apply mutatis mutandis for effecting such recoveries.
(1) If any person, takes CENVAT credit in respect of inputs or capital goods, wrongly or without taking reasonable steps to ensure that appropriate duty on the said inputs or capital goods has been paid as indicated in the document accompanying the inputs or capital goods specified in rule 7, or contravenes any of the provisions of these rules in respect of any inputs or capital goods, then, all such goods shall be liable to confiscation and such person, shall be liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention has been committed, or ten thousand rupees, whichever is greater.
(2) In a case, where the CENVAT credit has been taken or utilized wrongly on account of fraud, willful mis-statement, collusion or suppression of facts, or contravention of any of the provisions of the Act or the rules made thereunder with intention to eva
Any notification, circular, instruction, standing order, trade notice or other order issued under the CENVAT Credit Rules, 2001 by the Board, the Chief Commissioner or the Commissioner of Central Excise, and in force as on 28th February, 2002, shall, to the extent it is relevant and consistent with these rules, be deemed to be valid and issued under the corresponding provisions of these rules.
33[ANNEXURE-I
CHALLAN FORM
Printed Serial Number
[See Rule 8A (iv)]
ORIGINAL- FOR BUYER
DUPLICATE- FOR SUBMISSION ALONGWITH QUARTERLY RETURN
TRIPLICATE-MANUFACTURERS OFFICE COPY
1. Name and address of the exempted weaver (manufacturer):
2. Declarant code: (12 digit code)
3. Date of issue;
1. Name, address and central excise Registration No. of the manufacturer or supplier of yarn
2. Invoice No./Nos & date/dates .(herein afte
ANNEXURE-II
TEXTILE QUARTERLY STATEMENT FORM
[See Rule 8A(v)]
1. RETURN FOR THE QUARTER ENDING ON------------
2. NAME AND ADDRESS OF THE EXEMPTED WEAVER (MANUFACTURER):
3. DECLARANT CODE: (12 DIGIT CODE)
4. DETAILS OF INPUTS RECEIVED (TO BE GIVEN SEPARATELY FOR EACH TYPE OF YARN);
Opening balance Receipt during quater Consumed during quater Closing balance
1.Quantity
(in Kgs /meters)
2. Value (in Rs.)
3.Excise duty involved
Application for Refund of CENVAT Credit Under Rule 5 of the CENVAT Credit Rules, 200237
(Refund relating to quarter or month -)
To
The Deputy/Assistant Commissioner of Central Excise,
Sir,
I/We have exported under-mentioned quantity and description of the goods to ______. A copy of the relevant Bill of Lading, Shipping Bill or Export Application is also attached. I/We am/are not in a position to utilize the CENVAT credit of duty paid on inputs allowed under rule 3 of the CENVAT Credit Rules, 2002, in respect of final products exported under bond during the quarter or month _______. I/We request that refund of this credit may be granted.
1. Particulars of the go
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