Change in Cenvat Credit Rules 2004

Dear Friends

Pl see what the rule 2 (p) of CCR 2204 before amendment notification says

p) “output service” means any taxable service provided by the provider of taxable service, to a customer, client, subscriber, policy holder or any other person, as the case may be, and the expressions “provider” and “provided” shall be construed accordingly.

Explanation.—For the removal of doubts it is hereby clarified that if a person liable for paying service tax does not provide any taxable service or does not manufacture final products, the service for which he is liable to pay service tax shall be deemed to be the output service;

See what Notification 8/2006 dt 19-4-2006 says

19th April, 2006

Notification No. 8/2006-Central Excise (N.T.)

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 (Third Amendment) Rules, 2006.

(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 2, in clause (p), the ‘Explanation’ shall be omitted.

F. No. B1/4/2006-TRU

Note.- The principal rules were published vide notification No. 23/2004-Central Excise (N.T.), dated the 10th September, 2004, G.S.R.600 (E), dated the 10th September, 2004 and was last amended vide notification No. 6/2006-Central Excise (N.T.), dated the 20th March, 2006, G.S.R. 169(E), dated the 20th March, 2006.

This effectively means, in case of Say a person who being a payer of service tax under GTA was entitled to Cenvat Credit on Input Services is now prevented from taking such credit wef 19th April 2006

CA Deepak Gadgil
Solapur
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Deepak Gadgil
FCA DISA
Solapur
09422068273