rule 3(5b)of cenvat credit 2004

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2010 what is cenvat credit rule 3(5B)
how it apply

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

28 November 2010 (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 are removed
outside the premises of the provider of output service for providing the output service:
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.

aman kumar

aman kumar (Expert)
Follow

09 December 2010 sorry to say he had asked rule 3 (5b)not rule 5
Rule 3(5B) of CCR, 2004 reads as follows: [amendments in bold effective from 7-7-2009]
If the value of any,
i. input, or
ii. capital goods before being put to use,
on which CENVAT Credit has been taken is
i. written off fully or
ii. where any provision to write off fully has been made in the books of account,
then the manufacturer or service provider shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods:

Upgrade to CAclubindia Pro. Subscribe Now!

RAJ GUPTA

RAJ GUPTA (Expert)
Follow

04 August 2011 Sec 3(5B) has been amended wef 1.3.11 and is as follows:
As per Rule 3(5B) of CCR, 2004, if the value of any-
i. Input, or
ii. Capital goods before being put to use,
on which CENVAT Credit has been taken is-
i. written off fully or partially or (w.e.f. 1-3-2011)
ii. Where any provision to write off fully or partially has been made in the books of account,
then the manufacturer or service provider shall pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods.
However, if-
The said input or capital goods is subsequently used in the manufacture of final products or provisions of taxable services, the manufacturer or output service provider shall be entitled to take the credit of the amount equivalent to the CENVAT Credit earlier subject to the other provisions of these rules.