Sub rule 10a, of cenvat credit rules 2012

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 25 May 2012

Yes. Budget, 2012 has brought a facility of transferring Cenvat Credit for the manufacturer having more than one registered premises. Notification No. 18/2012-Central Excise(Non-Tariff) dated 16.3.2012 has been issued in this regard which is effective from 1.4.2012. This notification says that Cenvat balance of special additional duty (SAD) lying with any of the premises can be transferred to any other premises of the same manufacturer who have obtained the common Permanent Account Number.his transfer can be made at the end of each quarter by making an entry for the same in the documents maintained under rule 9. Further, a transfer challan shall also be issued which will contain the registration no. and name and address of both the registered premises – transferring and receiving the Cenvat Credit of SAD. Particulars mentioned in the document under rule 9 will also be specified in this challan.

The recipient unit will be allowed to take the credit on the basis of this transfer challan. The manufacturer or producer shall submit the monthly return, as specified under these rules, separately in respect of transferring and recipient premises.

However, the benefit under this notification will not be allowed if the manufacturer is obtaining benefit under the following notifications:-

(i) No. 32/99-Central Excise, dated the 8th July, 1999

(ii) No. 33/99-Central Excise, dated the 8th July, 1999

(iii) No. 39/2001-Central Excise, dated the 31st July, 2001

(iv) No. 56/2002-Central Excise, dated the 14th November, 2002

(v) No. 57/2002-Central Excise, dated the 14th November, 2002

(vi) No. 56/2003-Central Excise, dated the 25th June, 2003

(vii) No. 71/2003-Central Excise, dated the 9th September, 2003

(viii) No.20/2007-Central Excise, dated the 25th April, 2007

(ix) No. 1/2010-Central Excise dated the 6t h February, 2010

The above notifications are area based exemptions which are issued to exempt certain products if these are manufactured and cleared from specified areas.

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Amitabha Mukherjee (Sr. Manager, GST) (253 Points)
Replied 03 July 2012

If you go through the Notification no. 18/2012-CE(NT), under Rule 10A(2) of CENVAT Credit Rules, 2004 it provides that

" (2) The manufacturer or producer shall submit the monthly return, as specified under these rules, separately in respect of transferring and recipient registered premises"

It is clear that notification requires to submit the monthly return, however, sub-rule (1) says that excess credit of SAD is to be passed once in a quarter. Earlier, you used to submit the monthly return prescribed under Rule 9(7) of CENVAT Credit Rules, 2004 separately in addition to the monthly ER-1 return. However, consequent to the change in the format of ER-1, it is synchronised in a such a way that it contains the return of Rule 9(7) of CCR,2004 and return of Rule 12 of CER,2002. No separate CENVAT return is required now.

Anyway, till the return is modified, you please show in the credit utilised for other payment and clearly mention in the remarks column that the credit is transferred in terms of Rule 10A of CENVAT Credit Rules,2004.

satya (Executive Excise) (1839 Points)
Replied 07 July 2012

As per the above rule 10A of CCR 2004, one of our unit transfered some Amount to our unit. we have accounted it on 30-June-2012.

Now my question is, as per the Notfn no.12/2012-CE(NT) 9A column at sl.no.8 not inserted in ER1-online return in aces.gov.in website.

How I may show that transfered recept amount and utilisation of it in the present online ER1 return. Please clarify already 7 days passed to file the ER1 return.

Lalit Sangani (M.Com. Asst. Manager Account) (736 Points)
Replied 11 April 2014

Dear All,

I have tried to insert transfered amount from one unit to other unit in ER1 on Sr. No. 5 of last row "Credit Utilised Towards Inter-Unit Transfer Of Credit Under Rule 10A of CENVAT Credit Rules, 2004 for the month of march" but there is not allow to insert any amount in the return. how can I show transfered amount in return.

Thanx

Lalit Sangani (M.Com. Asst. Manager Account) (736 Points)
Replied 11 April 2014

Dear All,

I have tried to insert transfered amount from one unit to other unit in ER1 on Sr. No. 5 of last row "Credit Utilised Towards Inter-Unit Transfer Of Credit Under Rule 10A of CENVAT Credit Rules, 2004 for the month of march" but there is not allow to insert any amount in the return. how can I show transfered amount in return.

Thanx

Ajay Raghatate (Sr Executive (Excise & Accounts)) (736 Points)
Replied 11 April 2014

Try with Mozilla

satya (Executive Excise) (1839 Points)
Replied 11 April 2014

Dear Lalit,

If u are asking about SAD transfer amount means, it should be enter "CENVAT" sheet sl.no.8 DETAILS OF CENVAT CREDIT TAKEN AND UTILSED , 10 th row 5th column, that column is in green color.

Lalit Sangani (M.Com. Asst. Manager Account) (736 Points)
Replied 11 April 2014

Dear Sathya sir,

if you are telling about transfered amount can be show under "ADC_lvd_CT_75" but sad 4% which we can received during import transaction takes under "ADC_lvd_CT_85" ,

therefore I have sad 4% cenvat balance availble in column "ADC_lvd_CT_85", then how can I show the transfer amount in "ADC_lvd_CT_75".

satya (Executive Excise) (1839 Points)
Replied 12 April 2014

Dear Lalit,

For your clarify purpose;

The said 4% SAD (Addl Duty (Imports) was introduced under 19/2006-Cus notification, I am reproducing that notification hereunder,

Notification New Delhi, the 1st March, 2006
No.19/ 2006-Customs 10 Phalguna, 1927 (Saka)

G.S.R. (E).- In exercise of the powers conferred by sub-section (5) of section 3 of the
Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.19/2005-Customs, dated the 1st March, 2005
[number G.S.R. 117(E), dated the 1st March, 2005], hereby directs that all goods specified under the
Chapter, heading, sub-heading or tariff item of the First Schedule to the said Act, having regard to the sales tax, value added tax, local tax and other taxes or charges leviable on sale or purchase or transportation of like goods in India, when imported into India, shall be liable to an additional duty of customs at the rate of four percent. ad valorem.

[F.No.334/3/2006-TRU]

(S.Bajaj)
Under Secretary to the Government of India

it should be shown under ADC_lvd_CT_75 only, you referred column "ADE levied under clause 85 of Finance Act,2005".

This is for your information.

1 Like

satya (Executive Excise) (1839 Points)
Replied 12 April 2014

Sub rule 10a, of cenvat credit rules 2012

10 Replies

Online classes for CA CS CMA. Professional courses for GST, Tally, Others & Books

Dear Lalit,

For your clarify purpose;

The said 4% SAD (Addl Duty (Imports) was introduced under 19/2006-Cus notification, I am reproducing that notification hereunder,

it should be shown under ADC_lvd_CT_75 only, you referred column "ADE levied under clause 85 of Finance Act,2005".

This is for your information.

continued...

If u observe Cenvat sheet of ER1 Return 10th row "Credit taken inter unit transfer of credit rule 10a of CCr 2004,

all columns are disabled except ADC_LVD_CT_75 column"

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